Nobody likes paying for insurance, but we can’t argue it’s merit when an emergency strikes.
The costs of not having insurance are far more expensive than the costs to adequately insure your car, health, and home.
With that said, it is absolutely possible to save on insurance without skimping on quality.
Let’s get into what you need to know!
Saving on Auto Insurance
If you own a car in the United States, you legally need auto insurance. While each state differs on its requirements, you will need some form of coverage if you want to be a law-abiding citizen.
Compare Prices Each Year
When it comes to auto insurance, loyalty doesn’t always pay off. Many people save on insurance by regularly switching insurers.
Do your due diligence by comparing multiple companies at least once a year. Even though you won’t get an immediate quote, you will receive messages from agents seeking your business.
Set a Higher Deductible
Raising your deductible is an easy way to save on insurance. Even changing from $250 to $500 can make a big difference in your monthly payments.
Just makes sure that you can cover the costs if an emergency strikes. PS: That’s what your emergency fund is for!
Investigate Various Discounts
Many auto insurance companies reward customers with discounts based on low-risk lifestyle choices.
Such options may include:
- Discounts for student drivers with high-grade point averages.
- Senior drivers who take a refresher driving course.
- Members of certain groups (professions, college alumni).
- Installed anti-theft or safety equipment.
- Drivers that take defensive-driving or refresher courses.
It never hurts to ask the different companies what options they have available.
While this may not be an option for everyone, simply driving fewer miles can help you save on insurance.
If you’re driving less this year than previous years (shorter commute, newly retired), you may be eligible for a premium discount.
This should go without saying, but the more tickets you receive, the more your insurance will hike up premiums.
Don’t speed. Don’t be aggressive. If you do end up getting a ticket, it’s typically best to do what you can to get it dismissed (such as attending traffic school).
Drive The Right Car
If you’re in the market for a new car, be sure to check the average car insurance rates for the potential models you’re considering.
Selecting the right vehicle may be one of the most significant factors in helping you save on insurance.
Saving on Health Insurance
Healthcare may be one of the most contentious topics of the decade, but one thing stands to be true: good medical insurance makes all the difference.
To date, healthcare costs remain the leading cause of personal bankruptcy. Even with insurance, many people experience exorbitant medical fees that they cannot afford.
Thoroughly Check All Your Options
Health insurance requires due diligence on your end. You will need to look at all the options available to you.
If your employer offers health coverage, you need to assess each of their plans. You will also want to cross-reference those plans with that of your spouse’s.
Finally, you may also want to scope out the current healthcare marketplace to compare and contrast different costs and coverage options.
Check Every Bill
There are high rates of financial errors in medical billing records. It’s essential for you to be proactive and check every receipt or bill you receive.
To get an accurate picture, it’s best to get an itemized list that indicates every medication, procedure, or supply being billed.
Double check all the information with your listed copays and deductibles.
Ask for Coupons and Samples
Doctors understand the premium price patients pay for their healthcare costs. Many of them are happy to help provide samples or coupons for new medications.
All you need to do is ask! Many drug manufacturing companies provide extra samples for doctors. This is a great way for you to actually test the product before purchasing it.
Always Make Sure They’re In-Network
To save on insurance, it’s always going to cost you less to book with medical professionals who are in-network for your plan.
Always, always ask. Get it in writing if you must. And, just because your doctor sends you to a new specialist or anesthesiologist, it doesn’t mean that they are automatically in-network either.
The last thing you want to deal with is a surprise bill months later. And, if that does happen? Do what you can to fight and protest it.
Take Care of Yourself
You are in charge of being proactive over your health. Make sure that you’re eating a nutritious, balanced diet and exercising regularly. Brush and floss every day.
Follow a structured sleep pattern. Breathe and meditate often. Make sure that you’re taking care of your mental health as well!
In general, prevention will always cost less than treatment!
Saving on Homeowners Insurance
Just like your auto and health insurance, your homeowners’ insurance may have several loopholes that can help you lower costs.
Bundle Your Home and Auto
Many insurance companies reward loyal customers who choose to “bundle” packages together. You still want to comparison shop before signing any contract. However, if you are buying both, you can get discounts anywhere between 5-20%.
Enhance Your Home Security
You can also save on insurance by safeguarding your home. This can be as easy as installing a smoke detector or security alarm system.
If you install sophisticated systems, you may be eligible to receive hefty discounts- upwards to 15-20%.
With that said, before you go out and buy anything, check with your insurer to determine discount eligibility.
Maintain Good Credit
Your credit score can play a big role in determining your insurance costs. Keeping a high credit score shows that you are reliable and responsible- it also shows that you pay your bills on time.
You already know that having good credit is important. It turns out, it can also save you on insurance costs.
Mind The Roof
If your roof is over ten years old, insurance premiums may go up. That’s because older risks carry more perceived risk.
It’s best practice for you to document the age of your roof and make sure that your insurance company knows its in functional status.
If you have an aging roof? Consider replacing it. A bad roof can cause water leaks and serious home damage. This can wreak havoc on your insurance costs.
Pay Off Your Mortgage
Owning your home outright can actually help you save on insurance (just one more incentive to aggressively save!).
If you have paid off your mortgage, make sure that the insurance company knows this. If you have a low balance, consider supercharging your savings rate and paying that baby off!
Consider an Umbrella Policy
Contrary to what you may think, umbrella policies are not that expensive. They can also help reduce your financial risk if you have serious assets.
Talk to your insurance company to determine if there is any discount in adding an umbrella policy with your homeowners’ insurance plan.
Saving on Other Insurance
Although auto, health, and homeowners represent the major three insurance costs you’ll experience, they’re not the only ones.
With that said, insurance is simply about mitigating risk. Your car, body, and house are the most important things you own. That’s why insurance is so important.
However, there are many other things you can insure including:
- Your wedding.
- Your identity.
- Food poisoning.
- Accidental death.
- work liability.
The list can get even weirder. For example, people have insured:
- Alien abductions.
- Lottery winnings.
- Their voice.
- Personal vanity.
- Facial hair.
- Catching the Loch Ness Monster.
You will need to use common sense to make the best choices to determine whether the insurance is worth it or not.
For example, if you’re planning a $50,000 outdoor wedding in spring, it definitely may make sense to buy insurance in case of inclement weather.
If you have a prized heirloom necklace, you may want an insurance policy to cover the costs of it potentially getting damaged or stolen.
Furthermore, some employers will mandate certain insurance policies if you work in a field where malpractice is a possibility. These fields may include medicine, law, fitness, and even freelancing careers.
Keep in mind that is meant to cover what you cannot instinctively cover without going into serious financial distress.
So, to that sales rep asking you if you want insurance on your new mattress top cover? Probably not necessary.
Final Thoughts on How To Save on Insurance Costs
Insurance can provide you with an amazing peace of mind.
Because we cannot control for every outcome in this world, it’s important to have a plan intact in case the worst does inevitably happen.
Are you interested in learning more ways to save on costs? Be sure to check out our blog today!