These days, many people are feeling the effects of the costs of living going up in their area. While there are some costs that are hard to reduce like how much you need to pay for a mortgage or to cover unexpected medical bills, there are other ways you can save a few bucks here and there if you’re smart about it. When you notice that cutting down on discretionary spending like your morning coffee from your favorite coffee shop or trips to fun places like the movies isn’t lowering your expenses as much as you’d like, it might be time to evaluate other areas of financial planning that could help you afford to attain your other financial goals. In this case, doing some insurance research and seeing if it’s possible to lower your insurance rates or other costs associated with having insurance can be a step in the right direction.
Even if your current insurance rate doesn’t bother you, it always helps to save yourself some money now so you have more available funds to stash away in a savings account or investment. What’s more, saving money on one type of insurance may make it easier to spend higher amounts of your income on insurance policies to protect assets or areas of your life that you perceive to be more valuable. You can also put more money away for goals like retirement, raising a family, or even going on a ski trip that’s been catching your eye lately if you save money by doing some insurance research.
Who Can Save Money on Insurance?
While saving money on insurance may seem like something that’s reserved for folks who are privileged or possess special knowledge that is not readily available to the public, the truth is that just about anyone can save money on insurance. Unless you’ve already finished doing your insurance research and learned every single trick one could use to take your insurance rate down a few notches, there should be some ways to lower how much you pay for insurance. Even if you have followed most of the steps that we list below before you got a chance to read this article, you may be able to take your insurance savings to the next level by getting creative and moving outside of your comfort zone in the insurance world.
There’s only one camp of people who couldn’t possibly save another penny on their insurance payments. If you guessed that this group of individuals would be those who don’t have insurance, you’d be right! Paying zero dollars every month in insurance bills makes it so that unless you figure out a way to get insurance companies to pay you, you won’t be able to go lower than that. As long as you put some money towards insurance, you can practice making time for insurance research and lower your insurance bills. Although we can’t guarantee that you’ll save hundreds of dollars on insurance every month, there may be some ways to slowly shave down your insurance bill so it’s more manageable.
Although looking for ways to save money can seem like an activity that’s best suited to folks who are strapped for cash, you can conduct insurance research to save money no matter what your financial status may be. Even if you bring in a high income every month or you have a uniquely comfortable financial circumstance like benefitting from a trust fund, the less money you spend on insurance will equal more money to spend on what you want. Additionally, when you can do insurance research on how to slash your insurance bill before you need to do it, you’ll find yourself much less stressed or concerned if you do need to take some practical steps to lower your insurance rates or other costs associated with protecting your assets.
Why Should You Save Money on Insurance?
As they say, a penny saved is a penny earned. If you can avoid spending all of your money on insurance, you can put some of the money you save into repairs or upgrades for the item in question. When you do your insurance research, you might find that it’s easier to save money by maintaining your home, boat, condo, or other insured item than waiting until damage strikes to fix something. Saving money on insurance makes it more feasible for most households to put that money back into whatever is being insured by an insurance policy.
1. Home
While you could start anywhere on your insurance research journey to save money on insurance, a good place to begin is home insurance. From covering home additions to figuring out how you’ll pay for water damage restoration, your home insurance policy can do a lot for you as a homeowner. Unfortunately, home insurance can also cut into your take-home pay with high rates and other related expenses.
Before you commit to a home insurance policy or provider, you should see what’s out there. One company may be willing to offer you a rate that is significantly better than the first company you call. If you don’t do insurance research on what rates different companies are willing to offer, you may be stuck with a rate that stretches your budget to the max. When one company is willing to offer you a lower rate, you can report back to other companies and see if their agency would be open to matching that rate or going even lower. When you create competition between home insurance providers, you can end up winning. Even if you only save a few dollars a month by choosing one agency over another, this adds up over time.
Another way to lower the monthly cost of your home insurance policy is choosing a policy that has a higher deductible. While high deductibles can be frustrating if your goal is to meet the deductible as soon as possible, they can pay off in the end if they mean that you’ll spend less money every month on your home insurance premium. Although a higher deductible may mean that you’ll have to pay more money out-of-pocket for repairs and other qualifying events, this choice can be a wise one if you know that you’re at risk for large home repairs that will meet your deductible quickly.
Bundling Insurance Policies Can Help
If you’ve seen commercials that tell you that you can “save by bundling home and car insurance” on TV during your insurance research process, you may wonder if this is too good to be true. While some insurance companies may lure you in with this phrase as a gimmick, it is true that some other companies might be genuine in this offer. The only way to find out if this would save you money is to call companies that offer discounts for folks who buy their home insurance policies and auto insurance policies from there. Then, you can ask them for a quote to see how they could help you.
Reduce Risks
If you’re tired of paying high premiums because your home insurance assesses your home as high risk for damage during a disaster, you can show your insurance company that your home isn’t as vulnerable to damage during qualifying disasters as it used to be by making repairs and renovations that protect against this kind of damage. This will also save you money on repairs when disaster strikes. Before you make any changes to your home, it’s wise to contact your insurance company to do some insurance research on how this might impact your rates for the better or for the worse.
Keep Trying to Get a Better Rate
Other than bundling home insurance and auto insurance policies, preparing for disasters, and attempting to get a lower rate by increasing a deductible, there are a few other ideas for lowering your home insurance rate. You can keep your credit score high and make sure that your credit report looks good to home insurance companies. You can also ask about special discounts that may not be listed on a provider’s website such as discounts for those who are students, veterans, or otherwise qualified.
You can also make a habit of avoiding putting in a bunch of small claims with your home insurance provider. While it might not be your favorite idea to spend $200 on a repair that technically qualifies for reimbursement through your home insurance policy, it can save you money if you don’t make home insurance claims for every little thing that goes wrong on your property.
2. Boat
As a boat owner, you’ll want to make researching boa insurance a priority before you start frequenting boat clubs. To save money on boat insurance, you might be able to bundle your boat insurance with other policies. You may also be able to ask for a plan that has a higher deductible to reduce the costs you spend on premiums every month. If neither of those options lowers your boat insurance plan enough for you, it might be time to switch boat insurance providers to a more affordable option.
As you look into new ways to save money on boat insurance, it can also be helpful to think about other ways of cutting costs associated with owning a boat. If your boat and RV storage provider seems too expensive, you may be able to find a cheaper one. You can also protect your boat against damage so that you have a lower chance of filing claims with your boat insurance provider. This can help you get better rates in the future if you change providers.
3. Auto
When you want to pay for auto repairs, lowering your auto insurance costs can help. Although you might not be able to negotiate a better rate with an auto body collision repair shop, you might be able to lower your auto insurance rates by speaking with an agent over the phone. If you bundle your auto insurance with other forms of insurance, it could take your rate down. There might also be discounts through your insurance provider on maintenance like auto windshield repairs that justify a higher rate. As with anything, you need to weigh the pros and cons of paying for a service. If you can increase your deductible, you might lower your premium. You won’t know until you ask a qualified insurance agent what’s possible to reduce your rate.
4. Business
Some folks who may benefit from insurance research on lowering rates would be those who are selling a startup. Additionally, it may be wise to do insurance research if you own a company that offers IT solution services. While some commercial insurance rates may be as low as they can go, you might be able to get a discount if you bundle your commercial insurance policies such as commercial auto insurance, workers’ compensation insurance, and property protection through the same provider.
Bakeries and food service businesses can also benefit from conducting research on insurance early in the business planning process. Sometimes, starting with a lower rate is easier than reducing a rate later. Saving money on commercial insurance can sometimes involve switching to a more affordable provider.
When you’re struggling to make payments on your insurance policy, it can feel like your life is hopeless and your finances will never get better. Before you resign to a defeated state of mind, you should focus on what you can control in the situation. When you don’t know what to do, you can consult with insurance professionals in your area.
You can also speak with an agent at your insurance provider to learn more about what they can do to help you lower your payments. It’s better to talk with an insurance agent before you find yourself in a situation where you are truly unable to pay. You can ask friends and family to borrow money, pick up some side hustles, take out a credit card, or tap into an emergency fund in your community if you need extra help making insurance payments. While these options might not be a good long-term solution, it may be a smart idea if you’re trying to avoid consequences in the near future for missing an insurance policy payment.