Wednesday, August 27, 2014

20 Ways to Save on Insurance




September is National Insurance Month and Life Insurance Awareness Month and is a great time to purchase insurance or review your current insurance policies.  There are several types of insurance available: life, health, dental, home, renter’s, auto, fire, flood, disability (short term and long term), and many more.

The basic types of insurance everyone should have are: health, life and disability. Health insurance is needed if you develop a health condition or need to go to the emergency room. Disability insurance is used if you have a short-term or long-term medical condition that prevents you from working and ensures that you still continue to receive a paycheck, usually at least 60% of your salary. Life insurance is used in the event a family member dies to cover at a minimum burial costs.

Insurance is a form of protection against loss, damage or theft.  Insurance should not be used as a form of investment or to get extra money.  Insurance should provide enough to reimburse for loss or damages.

Get a free analysis of your existing coverage to see if you have the right amount of coverage.   When buying insurance it is best to comparison shop. You can contact the Better Business Bureau or search their website for companies and view their reliability report. Get at least three price quotes.

If you are able to purchase additional types of insurance it is best to purchase bundled packages or buy several insurance policies with the same company to save money.

You may not see the immediate benefit of buying insurance now but in the long run you will be glad you did. Buying insurance will save you money in the future and help you get over any financial crisis you may experience. Here 20 ways to save on common types of insurance.



Life Insurance

  1. Get coverage based on your needs not based on your wants
  2. Get term life until you 60 or over then switch to whole life
  3. Ask for an annual review to make any necessary adjustments
  4. Pay annually or quarterly

Health Insurance

  1. Exercise, improve your eating habits and improve your health. Ask for a reevaluation if you are in a high rate/risk policy
  2. Ask for an annual review to make any necessary adjustments
  3. Ask for discounts or reduced rates
  4. Get standard coverage at a minimum

Homeowners Insurance

  1. Only get enough for rebuilding costs not the value
  2. Make your home disaster proof or resistant
  3. Make your home secure
  4. Pay the insurance yourself instead of the mortgage company

Renter’s insurance

  1. Increase deductible
  2. Only get enough for replacement costs not the value
  3. Ask for an annual review to make any necessary adjustments
  4. Choose a good location
Auto Insurance

  1. Only buy what you need
  2. Keep a good driving record
  3. Drive a car with money saving features or eco-friendly features
  4. Drop collision or comprehensive



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