3 Ways to Save Money on Insurance
The concept of insurance is simple. Insurance allows both consumers and businesses the opportunity to protect themselves and their goods from loss. For a low annual payment, your insurance company will release a policy on almost any item in your home or office. That low yearly payment is often higher than we expect, though. It’s entirely possible to save money on your insurance!
When you’re shopping for a new car, do you visit one dealership and then head home in a brand new, expensive vehicle? No, most people shop around and find the best deal for their needs. Insurance is the same. You want to spend some time researching the best deals possible.
We recommend receiving at least three insurance quotes and compare the prices and policies of each. The internet makes comparing key insurance policies easier than ever.
Raise Your Deductible
We know; paying more out-of-pocket to save money on the overall insurance policy seems odd. However, if you raise your deductible, you lower the amount the insurer is liable for, thereby reducing insurance premiums.
A typical deductible is around $250. This amount can be raised to $500 or $1000 for almost every type of insurance available. The savings in doing so are often substantial. For example, increasing your deductible to $1,000 will result in annual savings of up to 20%.
It makes sense to avoid insurance claims, though few of us will go out of our way to do so. Small claims are likely to raise your insurance rates. If possible, pay for small claims out-of-pocket. Furthermore, raising the deductible, as we mentioned before, is a smart move to ensure only substantial claims are made.