Saving on your family’s insurance is an essential way to hit your financial goals for 2020. Since most insurance policies come up for renewal at least once a year, now is the time to start thinking about your best options for protecting your family’s assets during an accident or unforeseen disaster. These three strategies are all effective ways to pay less for your insurance policies so that you have more money to put toward other needs.
Bundle Your Policies
The majority of families must purchase several different types of insurance. Auto insurance helps to protect your family from having to pay the full costs that occur during a car accident. Home owner’s insurance protects you from the financial damage from everything from a break-in to a fire. You may also need other types of policies such as umbrella or flood insurance. Many insurance companies offer you discounts when you purchase more than one type of policy from them.
Work with a Mutual Company
A mutual insurance company works differently from other types of companies. A mutual insurance company is an insurance company owned entirely by its policyholders. Any profits earned by a mutual insurance company are either retained within the company or rebated to policyholders in the form of dividend distributions or reduced future premiums. Sometimes smaller local mutual companies, can offer their policyholders better rates than large national companies that spend millions on advertising. You’ll also find that mutual companies are more selective about who they issue policies to, and this also helps to ensure that your premiums remain low.
Practice Preventative Strategies
Once you find the right insurance company, you can take further control over how much you pay for your policy by focusing on strategies that prevent you from having to file a claim. Insurance rates are often determined by what a company considers your level of risk, and having a clean record helps to keep the costs lower. For instance, your auto insurance will be cheaper if you avoid things such as drinking and driving. You might also be able to save on your homeowner’s insurance by installing an alarm system that alerts the authorities in the event of a fire or break-in. Other things that affect your home owner’s insurance premiums are the neighborhood (lower crime rates = lower premiums), age of home, areas history of flooding.
You can also increase your deductible to lower your premiums (although this will put you on the hook for more if you have a claim).
Doing your research is the ideal way to find solutions for potential issues such as high premiums that cut into your ability to save money. Since insurance is considered an essential need, your best way to save money is to find ways to spend less on the costs during each coverage period. By focusing on options such as choosing the right agency that rewards your efforts to prevent accidents, you can expect to continue to save money over the New Year.
You might also like:
- Tips for Strategically Using Your Pre-Tax Health Savings Account (HSA)
- How Will a Fender Bender Affect Your Long Term Finances?
- The Insurance You Need to Protect Your Family
- Things to Consider Adding to Your Auto Insurance
About the Author:
Brooke Chaplan is a freelance writer and blogger. She lives and works out of her home in Los Lunas, New Mexico. She loves the outdoors and spends most of her time hiking, biking, and gardening. For more information, contact Brooke via Facebook at facebook.com/brooke.chaplan or Twitter @BrookeChaplan