Five Ways To Spend Less On Insurance In 2016

Did you resolve to save more money in 2016? Five ways can help.

It’s that time of year again, to re-evaluate what you’re spending and see where you could be saving. One area to look at is in the insurance premiums you pay. Is there a way you could be spending less for the coverage you need? Yes, and the team has compiled the following list of tips to help you spend less on your insurance and save more in 2016.

1. Quit smoking

Did you know that life insurance costs about 40 per cent more, travel insurance can cost about five to 15 per cent more, and home insurance costs up to 10 per cent more if you’re a smoker? Quitting smoking is not only good for your health, it's good for your bank account too. Your insurance provider will usually consider you a non-smoker once you've gone a full year without smoking, so make 2016 count. Kick the habit, and you can kick higher insurance premiums too.

2. Pay your premiums all at once

Whether it’s for your car insurance, home, or life insurance, try to pay your premiums all at once rather than in monthly installments. Many insurance providers charge a little extra to cover the cost of administering monthly payments. If you can afford to pay the cost of your annual premiums in one lump sum, you’ll spend less on your coverage.

3. Think about increasing your deductibles

What are your auto policy deductibles set at? Many people are afraid to carry a higher deductible because they want to minimize how much they'll be out of pocket in case of an accident, but a higher deductible can save you a lot of money over time if you’re not involved in an at fault collision. A change in deductible from $500 to $1000, for example, could save you five to 10 per cent off your premiums.

4. Bundle, bundle, bundle

Is your home (tenants or condo) insurance policy with the same insurer who covers your car? Insurance companies often offer clients who have more than one policy with them a discount on one, or even sometimes both, policies. The discounts can range from five to 15 per cent. Plus, it’s not just property insurance policies that could result in a discount. Depending on the insurer, an insurance policy for your motorcycle, RV or snowmobile could count too.

5. Shop around

A lot can happen in the space of a year. If you're getting married, buying a new home, or expecting a child you'll want to consider life insurance. If you've got travel plans in the works then there's travel insurance. Then of course, there's auto insurance. No matter what type of insurance you may need over the course of the year, can help you succeed in keeping your New Year's resolution because saving money is often simply about making sure you shop around for the best price.