Amanda’s Note: This was provided by an online contact.
Insurance policies are a necessary part of life for just about anyone. We insure the things that we won’t be able to cover costs on if something unexpected were to happen: a car accident, a health emergency, a fire or a flood. All of these are unfortunate experiences that no one would wish to have, but insurance is an inevitable part of being a driver or a homeowner. Here are a few money-saving tips to help you stay frugal with your insurance policies.
Keep a Clean Driving Record
If you can maintain an accident-free driving record year after year, your insurance costs will be less than a driver who has had a less-than-stellar driving history. The reason is simple: insurers see safe drivers as a better risk and thus reward them with lower premiums than drivers who are more likely to make a claim and require a payout.
Once you’ve been a driver for many years, familiarity behind the wheel can cause you to sometimes become more distracted, speed, or take more risks than you may have done when your license was brand new and you were more cautious. The American Automobile Association offers many resources to educate the public about road safety and the hazards of distracted driving, especially in today’s hyper-digital world.
Bundle Your Policies
Another way you can save on your overall insurance costs is by bundling your insurance policies with one provider. When you use the same agent for multiple insurance policies, for example, both car insurance and homeowners’ insurance, you can usually get a better deal than if you decide to farm out your various policies to different providers. This is when it pays to shop around with local insurance agents to get estimates and compare whether it’s worth it for you to bring all of your insurance business to the same place for a better deal.
Perhaps you haven’t considered all of the various insurance policies you actually have in your life. When you stop to look at all the things we require insurance for, from our residences to our cars to health and life, it makes sense that consolidating your policies with one agent can bring savings as well as convenience. Consumers may think that an insurer who provides auto insurance isn’t equipped to provide other types of insurance, but this usually isn’t the case. It pays to ask what other types of insurance your agent can offer.
Choose a Higher Deductible
Insurance policies are cheaper when you choose a higher deductible. This can sometimes be an effective cost-saving measure, especially in lower risk types of policies when you don’t anticipate having to use the insurance often, if at all. A lower deductible can often be chosen in health insurance, for example, and could make sense for you if you are a healthy adult who doesn’t often go to the doctor or have chronic conditions that make regular medical care a necessity. This article from Forbes demystifies this question and explains how deductibles work.
Ask About Discounts
Last but certainly not least, don’t forget to ask if there are any discounts available that may apply to you. Many insurers offer a reduction in policy prices for students, good drivers, and insuring multiple vehicles. In addition, car insurance is often cheaper for vehicles that have added safety features like anti-lock brakes and anti-theft devices like a car alarm.
Once you’ve gone through all of these tips, chances are good that you can save some money on at least one or more of your insurance policies. Be smart by consolidating your policies with one insurer, keeping a clean driving record, shopping around, and asking about discounts, and you’ll be well on your way to savings.