- Personal Finance
4 Easy Ways To Cut Insurance Costs
It's a tough task to get excited about the thought of obtaining the necessary insurances we need to protect various aspects of our lives, as we ponder the seemingly countless hours that will be spent in search of the best available deal with the lowest premiums. It has become a common and popular tactic in recent years to simply "bundle" all of your personal insurance needs regardless of the type with one insurance company in the hopes of gaining the maximum advantage. While this works to some extent there are 4 easy ways to cut insurance costs that take the bundling aspect a bit further and can really save a consumer significant money.
The first of these is to explore in great detail the availability of discounts on all types of insurance made by the various insurance vendors. Discounts can be presented for a ton of specific aspects of your personal lifestyle ranging from union and civic association memberships to your age and sex, your intake of alcohol and tobacco, how many miles you drive daily (or how few), and dozens more. Don't minimize the importance of these in reducing your overall insurance costs - a 10 percent discount for a person that requires 6 different types of insurance can add up to several thousand dollars per year in lower premiums.
Home insurance is also one of the best areas to cut insurance costs but only if the consumer in question assumes a proactive posture. A few hundred dollars spent on home upgrades to safety and security can save thousands of dollars over the course of a decade or so if you select an insurance company that recognizes and rewards due diligence.
Health insurance is easily one of the most expensive and most necessary of all insurances, but too often consumers falsely believe every member of the household have to be included on one policy. This is a huge mistake! Hypothetically, assume that one family member has a chronic condition. In most scenarios the extra cost for that individual is absorbed into the overall premium and divided by the number of people named on the policy. In this instance there is no exact way to truthfully determine what the insurance for the chronically ill person costs other than what you are fed by the insurance company. Seek out individual policy quotes from numerous companies for a chronically ill person and you may discover there are some nice savings to be found.
The last of the 4 easy ways to cut insurance costs is to examine car insurance from a different perspective. Most of us actually shop for car insurance backwards - first we purchase an automobile and then we search for the least expensive policy with the best coverage. Buying a new car and obtaining insurance on it should be blended together and approached at the exact same point in time, because one decision can influence the other. Assume there are two separate car models that you like about the same amount and each has the same sticker price. The car insurance premiums for car A may be $100 a month less than car B, thereby saving $7,200 in insurance costs over the course of a 72 month purchase agreement.