While people perceive insurance as a complex yet essential evil, several others consider it as an absolute necessity for stability and protection against any threatening life-changing event. Regardless of which side of the divide you stand on, we all agree that it is expensive to protect ourselves and our loved ones.
According to statistics, the average spending on homeowner insurance is $1,211, and a record high of $1,548 for motor insurance. Although it is important, insurance can quite clearly become a cost-intensive activity. But what if there is a way to save money on insurance? Here are some ways to maximize your insurance and minimize the cost.
1. Shop regularly for car insurance
According to industry recommendations, you should purchase your car insurance half-way through every year. In most states in the US, six months is the length of an insurance policy; you can therefore conduct your research before consequently re-increasing your cover, to save you money.
Auto insurance companies are constantly changing their rates, which is the reason you can secure a policy for more than 14 days before activating the policy. These are driven by changes in their cases, climate patterns, and industry rules. Although these changes may be insignificant, they accumulate over time.
2. Adjust your premium payment methods
Who wouldn’t love for their jobs to be made simpler? Like everyone else, insurance companies enjoy that too. Thankfully they’ll offer you discounts and a lower premium for this. Changing how you make your premium payment can save you in funds. Do you want to know how?
- Make full premium payments: instead of making regular premium payments, you should opt to pay in full for a year or six months at least. This is cheaper than making regular monthly payments since your insurance provider spends more on processing your payment every month.
- Go for scheduled payments: some insurance firms offer discounts when you set up automatic payments on your coverage. While this ensures your provider receives timely payments, you are equally saved from having to deal with missing or delaying payments. Consider this more of a shared benefit.
- Pay in advance: Don’t delay! If you settle your premiums for an impending period, say a month or so ahead of time, you earn another simple discount.
3. Bundle your insurance policy
While shopping for an insurance policy to cover you against your rentals, home, and other slip and fall accidents, there is a likelihood that you have seen promotions for bundling discounts. Interestingly, these discounts’ benefits have been limited to those who’ve taken the pain to exploit it. Insurance companies earn more in processing, administrative, and sales costs when they sell more than one policy to an individual.
This implies that discounts on moving you to at least two policies will pay off. Insurance policies on recreational equipment, condo, or life are usually less expensive than a homeowner policy, therefore creating less room for insurance firms to offer discounts. If you need more than one approach, enquire about bundling discounts and one-time premiums when buying coverage.
4. Ensure good health
Several studies have proved that Americans spend more on medical coverage than any other. In 2019, the average premium spend was $7,188 for single coverage and $20,576 for family coverage. Although ensuring good health wouldn’t lower your premium medical payments, it can however mean fewer medications and visits to the doctor, and reduce your general spending towards your deductible.
Maintaining excellent healthy habits reduces your exposure to risks like obesity, blood pressure, and cholesterol, which implies your provider takes less risk insuring you. This can hugely affect your life insurance premiums.
5. Consider group insurance
It would be best to consider participating in life insurance programs sponsored by your employer regardless of whether you have to spend financially towards it. Employers regularly finance their group insurance costs, making it less expensive than individual life insurance coverage. You may be offered cover up to a specific level even without proof of well-being, which may come as a massive advantage to some persons.
Additionally, you get to settle your premium via payroll deduction, which can be quite convenient. Make it a point to look at the group and individual rates for your age and health condition. Group insurance may help you save on your insurance.
Despite the numerous ways to save money when purchasing life insurance, they don’t always require paying an instant lower premium. However, it is essential to choose a policy that matches your need since buying the wrong benefits for a lower premium doesn’t account for savings.