How to Save Money on Insurance

Ways to Save on Insurance

Ways to Save on Insurance

Insurance can be complicated, but it is incredibly necessary. Whether you own a home or car or live with a partner or family, you definitely need insurance if you are looking to protect your life.

Insurance is not getting cheaper, but you can definitely agree that you want to have it in case of an emergency. So what is the best way to save on insurance? There are a few methods that you can practice to get the best deal on all forms of insurance in your life.

Increase Your Deductible

Your insurance deductible is the amount you would like to pay out of pocket before your insurance begins to pay. For example, if you are in a car accident that requires $2,000 in repairs, and your deductible is $500, that means you will pay $500, and then your insurance company will pay the remaining $1,500.

Raising the deductible on your insurance policy can help you to lower your monthly premium. This is due to the fact that the lower your deductible is, the more risk your insurance company takes on. The result is that your insurance company will charge you a higher premium for the extra risk.

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If you do plan to raise your deductible, you need to be prepared in the event you have to pay for it. As long as you have an emergency fund that you can cover your deductible with, then you can afford to take more of the risk.

Even raising your deductible by a few hundred dollars can make a big difference. By raising your auto insurance deductible from $500 to $1,000, for example, you could save around 13% on your premiums. So if you’re paying $1,500 each year on car insurance and raise your deductible from $500 to $1,000, you could end up saving around $200 every single year. Nice!

Evaluate How you Pay your Premiums

The best way to save money on your insurance is to make the insurance provider’s job easier. This means you can put a few things into practice that will get them to offer you discounts.

  • Set up automatic payments: This is a great method to ensure that you pay your bill each month, and some insurance companies can even give you a discount for it! You can also look to go paperless, as the insurance company saves money on sending out your bill each month.
  • Pay in full: Instead of paying monthly, if you pay your insurance once per year, or even once every six months, you will most likely receive a discount. This will erase the added fees that come with the insurance company processing your fee each month.
  • Pay in advance: Sometimes if you pay your premiums for the next policy period you can receive a discount. Contact your insurance company to see if this is an option.

Consider Bundling your Policies

Some insurance companies will offer you a lower premium if you bundle your insurance policies. So instead of having an insurance policy for each of your vehicles, your boat, your homeowners or renters insurance, instead, you can bundle your policies.

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You might actually save up to 15-20% off your insurance bill without changing anything! Even if you have more than one car in your family, you can earn a multi-car discount by having them under the same insurer.

Inquire about Discounts

You never know what discounts are offered unless you ask! There are plenty of discounts available for a variety of reasons such as:

  • Safe driver/defensive driving discount: For those who have not had an accident in a certain amount of time.
  • Good student discount: If you hold a 4.0.
  • Low mileage discount: For drivers who drive less than a specified amount of miles.
  • Affiliation discount: Members of the military, AARP, university alumni, or other organizations.

Reach out to your insurance company or talk to an advisor at Mountain Insurance a Denver insurance company, and ask what discounts you might be able to claim on your policy.

Pay Only for Coverage you Need

Having the right insurance plan is extremely important, but that does not mean that you need to pay for coverage that you don’t need.

For example, if you have a car from the 1990s that is a bit beat up, totally paid off, and not worth anything, you might consider taking collision coverage off your policy.

You should also be aware of additional riders that can be attached to your policy that you do not need. This can include a ride that might be added to your homeowner’s policy to cover home renovation projects. If you do not plan to perform any home renovations in a few years then it is safe to say you can drop this.

Older and Reliable Vehicle v/s a Brand New Car

Although a brand new car can be shiny and beautiful, it is also a lot more to insurance than a model that might be a few years old. This is because new cars are a lot more expensive to repair and replace. By buying a five-year-old vehicle, you can save 18% on average on your car insurance versus a brand new model.

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Even though you might think that advanced safety features in newer models might lead to insurance savings, it is simply not the case. The fancy features are also more expensive to insure and will outweigh any discount.

Work with an Insurance Company that you Trust

There is nothing worse than shopping for insurance, but if you work with a company like Mountain Insurance, a Denver insurance company, it can make it a lot easier.

By comparing a multitude of plans and shopping around for insurance, you can save hundreds each month. It is worth it to spend a bit of time working with an agent to ensure positive savings. At Mountain Insurance the process is easy. They’ll shop around for you and help you find the right coverage for you at the best price.

About Aditi Singh 85 Articles
Aditi Singh is an independent finance and investment advisor since 7 years and recently added with Investment Pedia. Users are welcome to put comments on her contributions.

1 Comment

  1. Pretty good post. I just stumbled upon your blog and wanted to say that I have really enjoyed reading your blog posts. thanks for the amazing information.

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