Insurance is a valuable asset within any financial plan, but that doesn’t mean that the premiums can’t hurt your budget if you aren’t careful. Fortunately, there are several ways to save money on insurance premiums. Here are five suggestions to help you get the coverage you need at a price you can afford:
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Stick with the same company: Everyday, insurance companies send out messages and commercials to vie for your business. To encourage customers to purchase all of their insurance in the same place, they will often provide discounts for people who hold multiple policies with them. Be sure to let your agent know of any existing coverage you have while you shop so he or she can help you take advantage of these multi-policy discounts.
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Have your current policy on-hand: When switching insurance carriers, know what your current insurance limits, deductibles, coverage options and premiums are. This will help you avoid becoming over or under-insured with your new policy and will help you determine an appropriate premium for your budget.
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Discuss deductibles: A higher deductible generally means a lower insurance premium because it shows that you are accepting some of the potential risk of a claim. But remember, only choose a deductible that you can afford—otherwise, you might not be able to carry the cost when an insurable event actually occurs.
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Choose appropriate limits: Limits on your insurance policies represent the maximum amounts that an insurer might need to pay if you have a qualifying insurable event. When you over insure your car, home or life, you create limits that are higher than necessary that bring on a premium expense that is wasteful. Instead, be sure to choose appropriate limits that will help make you whole after an event.
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Make use of riders: Riders are additional benefits that can be added to certain insurance contracts. For instance, in life insurance—instead of buying separate policies for your spouse or children—you can add riders that provide a death benefit in the event that they pass away before you do. Riders are generally less expensive than individual policies but be sure you understand how they work before you add them to your policy.
The best way to get an accurate and affordable insurance quote is to work with your agent and offer him or her full disclosure on your life and needs. An agent is your best resource in finding the premiums you can afford in a policy that doesn’t compromise benefits.