Tips to Save $$ on Your Insurance
April 22, 2008 by Elizabeth Potts Weinstein
Tips to Save $$ on Your Insurance
Are you paying too much for your insurance?
You may be not taking advantage of discounts available or may be paying for more coverage than you need … and could save money on your premiums by tweaking your insurance policies.
- Increase your homeowner deductible to $1000-5000, and your automobile insurance deductible to $500-1000. We recommend that you do not turn in homeowner's claims under $1000, and perhaps even under $5000, to avoid having your coverage dropped for small claims, especially water damage. And, since you have an Emergency Fund (right?) then you should be able to pay for small claims from your savings.
- Consolidate homeowner's and automobile insurance policies to the same company, to gain household multiple-policy discounts.
- Obtain term life insurance instead of universal or whole life insurance (unless you are one of the very few people who need lifetime coverage).
- Don't save for retirement or college in an annuity (where you pay additional fees). Set aside that money in an IRA or 529 College Savings Plan.
- Are you in a military family? Member of an association or professional organization? You may be eligible for low-cost life, homeowners, auto, health, disability, long-term-care, and professional liability insurance.
- What is your profession? Do you have any advanced degrees? Are you a student with an A (or even a B) average? Check with your insurance agent to see if your professional or degree entitles you to a discount on your coverage (because people with your professional have less accidents …).
- Are you still paying PMI (Private Mortgage Insurance)? If your primary mortgage is under 80% of the value of your home, then you should contact your mortgage carrier to get the PMI removed.
- Are there lots of health insurance options available through your employer? Are you self-employed? You may pay less for your medical expenses by choosing the high-deductible plan, especially if you have low medical needs. Any deductibles paid may be outweighed by a significant savings in premiums, especially if (1) well-care and diagnostic tests are covered, and (2) you are eligible for a Health Savings Account.
Take Action
Get a copy of your insurance declaration page (that says your coverage and limits) for all of your policies. Review your insurance policies against the tips in this article to see if you are paying too much money.
Great post! You should also be aware that term life insurance rates are 60% lower than they were 10 years ago. So, if you have a term life insurance policy that you bought 5 or 10 years ago, even though you are older, you may qualify for a lower rate.