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9 Ways to Save on All of Your Insurance Costs

November 16, 2010

Insurance is a necessity – it protects our most valuable assets from loss. But, this doesn’t mean that you shouldn’t take every opportunity to save on your premiums. Here are nine important tips for saving on your insurance costs:

1.   Buy What You Need

More is better right? Not necessarily! By over-insuring your home, life or automobile you will pay higher premiums, but you won’t necessarily receive a larger payout if you happen to need to make a claim. So choose the right insurance for what you need and save the additional premiums that you might pay if you were to over-insure.

2.   Combine Your Coverage

Insurance providers want to cover all of your insurance needs, and they will offer you an incentive to keep your policies with them. Request life insurance quotes for policies designed to cover you and your spouse. You’ll see that the premium for a joint policy is less than the premiums to insure both of you separately. Compound your savings by combining your home, auto and life insurance if you can.

3.   Pay Annually

Monthly payment plans are tempting, but remember, you pay for that convenience. This service will cost you, in the form of an administration fee, a financing fee, or both. If you can afford to make one annual payment, pay all at once and save.

4.   Compare, Compare, Compare!

Even if you’ve compared your insurance rates in the past, that doesn’t mean that your chosen insurance company is still giving you the best rate that you might qualify for. Taking the time to request several insurance quotes per policy from different providers might save you hundreds of dollars in premiums.

5.   Increase Safety & Save

Certain cars qualify for lower premiums because they are safer or less prone to theft. Advanced safety features and alarm systems help your insurance company reduce the frequency and severity of claims. Likewise, if you take measures to make your home safer you can save on your home insurance premiums. Whether you’re replacing your vehicle or renovating your home, making certain changes can save you money on your insurance premiums – just make sure you advise your insurance company, or you won’t reap the financial benefits.

6.   Leverage Your Affiliations

Many auto and home insurers offer discounts on insurance for certain affiliations – either paid or professional. So, if you are a member of CAA or other associations, or if you have a particular professional designation or affiliation, ask which insurance providers offer preferential rates that you could qualify for, and take advantage of the savings!

7.   Longer Terms Can Mean Lower Premiums

Though home and auto insurance are renewed annually, some other types of insurance offer varying terms, and you can save money by locking in for a longer term. Consider a twenty year term life insurance plan, instead of a ten year plan, as you can maintain the initial rate you qualify for over the entire term. The same applies to travel insurance – if you will be leaving the country more than once in a year, you might well save by getting coverage for the entire year instead of paying trip by trip.

8.   Educate Your Young Driver

Insuring a new driver, especially a young driver, is expensive. Signing your young driver up for an accredited driver training program will significantly reduce their car insurance premium, and as a bonus, will also help you feel more comfortable about them getting behind the wheel. Find out which companies offer more competitive auto insurance quotes for young drivers by checking with a number of providers.

9.   Find a better deal

If for any reason you are not happy with the insurance quotes you have received – get another one. Insurance is a competitive market, with many companies offering policies with different premiums and different options. Don’t be afraid to seek out a policy that fits your needs, for a premium you can afford. If you’re approaching your renewal date, start early and see what your options are. Often, the first step is getting a few online quotes – this will help you understand how your insurance provider ranks and whether there are opportunities for you to upgrade or save.