6 Easy Ways to Save Money on Insurance in 2020
Many people see insurance as a must-have, since it provides stability and protection in the event that something unexpected happens. Whether it's a car accident, an injury, or a kitchen fire, your insurance will make you whole again. Just because it's a must-have, though, doesn't mean you should be paying unreasonable amounts for your protection. Below are a few simple ways you can save money on insurance.
1. Consider How You Pay Your Premiums
You can almost always get a discount by making things simpler and easier for your insurance company. One way to do so is to change the way you pay your monthly premiums. With many insurance companies, the choice of when and how you pay will influence the price you pay.
Rather than sending in small premium payments month-by-month, your insurance company would prefer it if you either paid it all upfront or paid for 6 full months at a time. The cost of your premium is all but guaranteed to go down if you choose one of these payment options.
Some insurance companies like to get your payment on the same day and time each month, and setting up automatic payments can allow you to do that. It's important to note that not all insurance companies will give you a discount for setting up automatic payments, but many do.
Setting up automatic payments, even if you don't get a discount, might be a good idea because it protects you from missing a payment and incurring any late fees or penalties.
Pay in Advance
If paying your insurance premium every month is the option that fits your finances best, you can sometimes get a discount on your insurance by sending your payments in early. Insurance companies need premium payments coming in so they can cover claim payments that are going out. The faster your money comes in, the happier your insurance company may be.
2. Raise Your Deductible
Raising your deductible is an excellent way to save money on insurance since it fundamentally changes the way your plan covers you. The premium and the deductible are related; when one goes up, the other typically goes down. That being the case, by raising your deductible (the amount that comes out of your pocket) you can lower your monthly premium considerably.
The reason this strategy can be effective is that few people who purchase an insurance policy ever have to use it. Take car insurance for example. If you're a safe driver with a clean driving record, do you really need to pay that much month-to-month? Since you don't really use your insurance, the amount you pay as your deductible will matter less because you're not paying it anyway. Just be smart and make sure you have enough in savings to cover your deductible should you need it.
3. Bundle Your Policies
Insurance companies love it when a client buys more than one policy from them. They love it so much that it's more or less a universal fact that if you bundle policies with a single insurance company, they will provide you with a significant discount on your insurance premiums.
4. Remove Unnecessary Coverage
The amount of coverage you're looking for will directly affect your premium. As you can probably imagine, the more comprehensive your coverage, the higher your premium is going to be. If you drive an old vehicle that isn't worth much, do you really need a comprehensive auto insurance plan? Depending on the value of your vehicle, you may not even need collision insurance.
Deciding on how much coverage you need can be a daunting task. Aim too low and your deductible may skyrocket. Aim too high and you're paying for coverage you'll never use. A good rule of thumb here is to try to err on the side of overbuying than underbuying. It's best to have it and not need it than to need it and not have it.
5. Ask for a Discount
Believe it or not, the easiest way to save money on insurance is to simply ask for a discount. Insurance companies tend to reward clients for certain achievements or habits. Often, students with a GPA that meets the insurance company's criteria can enjoy a discount, as can active (and sometimes veteran) military personnel.
6. Shop Around and Compare Prices
It's seldom a good idea to go with the first company you look into. You'll be hard-pressed to find an insurance company that doesn't offer incentives or deals to bring the cost down. However, to really enjoy the best price possible, you need to consider the starting cost of your policy.
The only way you will get an idea of how expensive (or affordable) the policy you're considering is going to be would be to get additional quotes from other insurance agencies and compare them. You may find the insurance agency you're dealing with doesn't have the best prices.
There are lots of easy ways to save money on insurance in 2020. If you'd like to see how our company can save you money, head over to The Comparison Company and start comparing today!