Insurance is one of those things that is very necessary but, also expensive. You put out thousands of dollars every year for insurance coverage and you feel like you don’t get anything in return because you haven’t had to open a claim. Although, that’s a good thing, you still feel like you’re putting out a lot of money “just in case.” Three Easy Ways to Save Hundreds on home and auto insurance will tell you or or even just remind you of how you can save a lot of money on insurance in the long run!
You feel like you just can’t win with insurance companies! Right? Well, I’m going to tell you how you can save some hundreds on your insurance premiums. This is especially helpful when you’re living on one income and living on a budget while trying to pay off debt.
You can save your insurance savings or you can use it to pay off debt. Nonetheless, it’s more money in your pocket and not in the pocket of the insurance companies. They profit from the very things people don’t do below. Insurance companies profit from you not having extra money on hand to pay your annual premiums.
Again, they take advantage of people who don’t have access to a lot of cash. People who can’t pay their annual premiums in full or people who can’t pay higher deductibles at the time of opening an insurance claim. But, you don’t have to be one of those people!
I learned to become thrifty when I was in my teens and helping my mom pay the our household bills. My spending money was only $20 per week and I had to buy my clothes with that too. Once I went on my own car insurance policy, after my parents passed when I was only 18 yrs. old, I really had to learn to budget my money.
Now, let’s talk about 3 Easy Ways to Save Hundreds on Home and Auto Insurance! I know I sound like a commercial but, I promise I’m not Flo from Progressive and I’m not getting paid to say this!
Three Easy Ways to Save Hundreds on Home and Auto Insurance
Raise Your Deductible to $1000
When we raised our deductible from $500 to $1000, our car insurance dropped $300 per year! You can save up to 40% by switching to a $1000 deductible. You can save money even if you change from $250 to $500 deductible.
Having a higher deductible will lower the cost of your insurance. So, when you get into a car accident, instead of paying the first $500 toward the bill, you’ll pay the first $1000 instead.
That sounds like a lot out of pocket if and when you do have an accident however, I have a good suggestion on how to make this much less painful.
When you higher your deductible, your insurance company will send you a refund for what you’ve already paid for the term. Cash that check and put it in a safe deposit box at the bank or somewhere safe that you can easily pull it out to use when and if you need it to pay the deductible. Add to the amount until you reach the $1000 so you have it ready in the event that you need to put in a claim.
Insurance companies charge you more if you want a lower deductible. They’re taking advantage of those you can’t fork out $1000 deductible at the time of a claim.
By having a higher deductible, you’re saving hundreds per year. That’s money you’re saving! It is worth having a higher deductible over the long run.
Bundle Home and Auto Insurance
If you have two separate policies for Home and Auto, you’re probably paying too much. This is not the case all the time but, most insurance carriers offer a discount if you carry both home and auto insurance with them.
If you don’t yet own a home, you can bundle renters insurance or life insurance to get better premiums on your auto insurance. Ask for a full list of discounts. You may also get discounts if you’re children have good grades or if they’ve take driving courses. You may also get discounts if you drive within a certain distance to work or even if you have a good credit score. Ask your insurance company for all of the discounts in which you may qualify.
Therefore, if you’ve been working on improving your credit score, call your insurance company and see if they can give you a discount based on your improved credit score.
Check insurance premiums every so often. Rates go up and down. You may think you have the best deal in town when that is no longer the case. Check rates to make sure you’re getting the best rates every year.
Pay Your Annual Premium in One Lump Sum
By paying your annual premium in one lump sum, you’ll save money because insurance companies either charge fees to pay premiums using installments or they give you a discount to pay in full. The more installments you pay, the more money you pay.
Simply, insurance companies charge you more to pay your annual premiums in installments.
It can be hard to pay $1000+ insurance bill but, if you take the money from your income tax refund, you’ll save more money on your insurance.
Read this article from Consumer Reports on more ways to save on car insurance. It also backs up my suggestion to raise your deductible to save on your premiums.
With so many necessary things on which to spend your money, it’s great when you can save hundreds alone on insurance. Use your savings on insurance to save for vacation, pay off debt, or use it toward paying off your mortgage or auto loans! These Three Easy Ways to Save Hundreds on Home and Auto Insurance will put more money in your pocket and move you one step closer to financial freedom.
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