If I told you that I would pay you $ 70 per month for the next several years, would you read this and follow through with the suggestions? Or, what if you said you could earn the equivalent of $ 840 per hour, if you are overpaying for insurance, then would you read this carefully and follow through with the suggestions?
Insurance is boring and difficult to understand at times. Most of us have a friend who sells it, or we use the family’s insurance company when we start driving, or we buy a home and allow the agent to put together the correct insurance package for us. I know a lot of agents, and most of them are very nice and honest people, but don’t forget that, at the end of the day, agents are salespeople.
I have received several emails asking how to pay off debt if you are barely making enough to pay the bills you already have. When we were getting out of debt, one of the ways we increased our income without working anymore was by reviewing our insurance policies and saving every dollar we could. The following are a combination of methods Melissa and I use and strategies others have used to put more money in your pocket, with a little research and usually less than an hour of work.
1. Lower your monthly premiums. When Melissa and I got married and were in college, we set our deductibles low, so in the event that we had an accident, we could afford to have our vehicles repaired. Over time, the savings on your deductible will cost you. If you pay $ 40 more per month for a lower deductible of $ 500, you will spend your savings of $ 500 (if you had an accident) after one year. Increasing your deductible can be a great way to put money back in your pocket, just make sure you have enough money in your emergency fund to cover your deductible in case you do have an accident.
2. Don’t duplicate insurance coverage. If you already have a good health, disability, and life insurance policy, you may want to buy only the minimum injury protection on your auto policy that your state requires.
3. Insure your car (s) where your home is insured. Many insurance companies offer discounts if your home, car, and any other adequately insurable are insured with the same company. The discount may only apply to your home, or only your car, but in some cases it could Surety Bonds apply to both. Get separate quotes for each one. Even though your car rates may be slightly higher than a competitive offer, if the total cost of the insurance is less, take the deal and keep them insured with the same company. (It goes without saying that all cars must be insured with the same company for potentially lower rates)
4. Don’t portray the image of a risky customer. There are two major ways it can cost money when shopping for insurance (besides lying and committing fraud). Those are allowing your insurance policy to expire and a shaky credit history. If you allow your policy to lapse on coverage, you may have more expensive insurance than before. Also, customers who let their policy lapse, even for just a few days, are considered more of a liability and can expect a higher premium. An individual’s credit rating has been found to have a direct correlation with propensity for insurance claims. Generally, the lower the credit score, the higher they can expect to pay in premiums. Make sure to keep your credit clean to keep your rates lower.