How to Spend Less on Insurance (While Still Getting the Coverage You Need)!
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Sick and tired of paying an arm and a leg for insurance? Learn how we were able to slash $1,000 with our insurance with these tactics!
The average American spends more than $2,000 each year for auto and home insurance and nearly twice as much on health insurance. That breaks down to almost $500 every single month.
How to Save on Your Insurance
If you are tired of devoting such a large portion of your budget to insurance costs, there are a few things that can be done to lower your premiums.
Using the tactics below, we were able to save more than $1,000/ year with our insurance!
Shop Around for the Best Deals
Insurance costs can vary wildly from provider to provider. It is important to shop around and compare rates every couple of years.
You could try contacting multiple companies or one agent who sells insurance for multiple companies.
As you are calling for quotes, be sure to ask about any discounts you may be eligible for–not every agent will mention them during an initial quote.
I've included a contact list below of some of the big insurance companies to make it easier.
- 21st Century Insurance 1-877-310-5687
- Allstate Auto Insurance: 1-800-ALLSTATE (1-800-255-7828)
- Ameriprise 1-888-554-6368
- Farmers 1-800-FARMERS (1-800-327-6377)
- Geico 1-800-861-8380
- Liberty Mutual 1-800-837-5254
- Nationwide 1-877-669-6877
- Progressive 1-800-PROGRESSIVE (1-800-776-4737)
- State Farm 1-800-440-0998
- USAA 1-800-531-USAA (1-800-8722)
Bundle Your Policies
Purchasing multiple policies from the same insurer can help you save a significant amount of money.
Nearly every insurance company offers multi-policy discounts. Although discounts can vary from company to company, the national average is 10 percent.
My bundled policy saves me 15 percent.
Raise Your Deductible
The amount of risk you are willing to assume can have a huge impact on your insurance premiums.
No matter what type of insurance you buy, raising your deductible will lower your monthly insurance costs.
Of course, you will be on the hook for the deductible if something goes wrong.
But if you have an emergency fund, you can easily self-insure and get your investment to pay off in a year or two.
I recently saved $354 each year by raising my home insurance deductible from $250 to $1,000. Within two years, I will begin making money on that small adjustment.
Seek Out Specialists for Your Insurance
Some insurance companies specialize in a particular type of insurance or a particular demographic.
For example, if you are looking for mobile home insurance, you may do better with a company that specializes in mobile home insurance. The same is true of life insurance or health insurance.
Specialist companies often employ underwriters that are able to fully examine the extent of your disease or hobbies.
This may help you get better rates than you could get if you were simply lumped into one group.
Ask About Discounts
Discounts are available for every type of insurance.
You may be able to get a non-smoker discount, a professional discount, a student discount, a good credit or financial stability discount, renewal and loyalty discounts, and a myriad of other discounts if you simply ask for them.
Consider Group Insurance
There are a lot of different groups and associations that offer special insurance plans or discounts on various types of insurance.
You may already be a member of one of these organizations. If not, you could consider joining to reap the benefits.
The savings you are eligible for may easily cover the cost of membership fees.
Take a Defensive Driving Course
There are a lot of bad drivers on the road. Taking a defensive driving course will help you navigate the dangerous terrain. It can also help you save on your auto insurance premiums.
Embrace Safety Features and Devices
Safety features, such as airbags, anti-lock brake systems, and anti-theft systems, can help you save money on your auto insurance.
Fire alarms, deadbolts, and burglar alarms can help you save on your home insurance. You may already have one or more of these things. If not, they can be installed for a relatively low cost.
Don't Buy Too Much Insurance
Although you should never skimp on insurance, it pays to be conservative and really think about the type of coverage you need before purchasing a policy.
You don't need duplicate coverage–for example, a health insurance policy plus an auto insurance policy with health coverage.
You also don't want to spend an exorbitant amount of money insuring a car or other items that aren't worth more than a couple of thousand dollars.
Insure these items, but do so conservatively.
Guest post from Bailey Harris, who writes about home owners insurance and other finance topics for www.homeownersinsurance.org.
Thanks for the great suggestions.
Also, some policies include supplemental add ons that you are paying for, such as rental car coverage. In my opinion, many of these add ons can be removed without sacrificing true protection.
Gosh, insurance is such a hot topic in our marriage. It seems like it’s something you can always negotiate when you are already in a plan. Of course, getting the right plan for your family takes time to examine. Great post!