Would you believe me if I said that I would pay $70 per month for the next few years? Or, what if I suggested that you could earn $840 an hour, which would be a fair amount if your insurance premiums are high? Would you take the time to read this and then follow up with my suggestions?
Insurance can sometimes be complicated and confusing. Many of us know someone who sells it. Although most agents I have met are honest and nice, there are still salesmen involved.
Many people have emailed me asking how to pay down debt when they are barely making enough money to pay their bills. We were able to increase our income by reviewing our insurance policies, and saving every dollar possible while we were trying to get out of debt. Melissa and I combined several strategies with strategies from others to help us get more money in our pockets. This took little research and a lot of time.
1. Reduce your monthly premiums. Melissa and I got married in college and set our deductibles low so that in the event of an accident, we could afford to have our cars repaired. You will lose the savings you make in your deductible over time. You will lose your $500 savings if you have an accident. If you pay $40 per month more to lower your deductible of $500, you will end up spending it all after one year. While raising your deductible is a great way of putting money back in your pocket it’s important to make sure that you have enough money in your emergency funds to pay your deductible in case you do end up in an accident.
2. Double up on insurance coverage. You may not want to purchase more than the minimum required by your state for auto coverage if you have good health, disability, or life insurance.
3. Your car(s), if you own it, should be insured where your home is. Insurance companies often offer discounts for homeowners who have their car, home, and other insurables all covered by the same company. Although the discount may not be available for your home or your car, it might in certain cases apply to them both. Get separate quotes on each. Although your rates for your car might be slightly higher than the price of a comparable bid, if you have lower overall insurance costs, consider taking the deal and keeping them all insured with one company. It should be obvious that all cars should have the same insurance company to get lower rates.
4. Do not portray yourself as a risky client. You can lose money shopping for insurance in two major ways. These are allowing your insurance policy lapse and having a poor credit history. Your insurance policy may be less affordable if it is allowed to lapse. Customers who allow their policy to lapse in coverage, even for a few days or less, can expect a higher premium. Credit rating has been shown to be directly related to the likelihood of insurance claims. The higher your credit score, the more you can expect to pay for premiums. To keep your rates low, make sure your credit is clean.
5. Keep it on the D (Down Low). It will always be less expensive to insure cars that are less likely be stolen, have higher safety standards and are easier to fix. Although I am not suggesting that your car should be considered the outcast of sedan society, premiums for cars with higher values are more favorable. It is more expensive to insure cars that are frequently stolen, costly to fix and are likely to cause injury in an accident. The following website can be consulted: Institute for Insurance and Highway Safety to get specific ratings on vehicles and find out if you’re driving a car that is stealing money from you.
6. Next, make sure to compare insurance rates before purchasing a vehicle. Too many people try to squeeze into the car they want. After they buy the car, they call an insurance agent to find out that the monthly insurance payment is approximately half the amount of the car payment.
7. You should only purchase what you really need. This can be a daunting step. You will need to get a rough idea about the worth of each of your items. assets. Knowing your assets will allow you to choose the right amount for liability. You can rent a home if you’re married without any dependents. Assume you don’t have any savings, and that the only thing you have saved is a small retirement fund. In this scenario, it is unlikely that someone would need $500,000 of liability insurance. You may not have enough coverage. While an increase in coverage might cost you more, if you are involved in an accident with someone else and are found responsible you should have enough money to pay all your assets in case of a lawsuit. You should give liability insurance the attention it deserves. You may also want to cancel collision insurance if your vehicle is less than a few thousand dollars. This is the most expensive part of your policy. Carrying liability only could help you save significant money if you are able to replace your vehicle with money you have in savings. Notice: You will need to carry collision and comprehensive insurance if you make payments on a vehicle that you have borrowed or purchased from a dealer.
8. Use your professional certificates or degree to get work. Insurance companies often offer discounts to students who have completed post-secondary education or those who are qualified for certain occupations. Your education history and professional certifications should be disclosed to your agent to determine if you are eligible for a discount to help pay off student loans.
9. You should shop around carefully. Although changing insurance companies can save you a lot of money, it is best to compare apples to apples (same coverage, same deductibles, etc.). You will see significant savings. Long-term customers often get discounts or forgiveness for accidents.
10. Ask your agent. Ask your agent. Finally, a great way to get lower rates is to meet with them and go over your policy. You can show interest in your policy and know how much you actually need. You can tell them about your history, education, military background, defensive driving classes attended, etc. and they will be able to inform you of any discounts that may apply. Although this seems simple, people rarely speak with their agents unless the policy is being written or when there are accidents.
This is by no way a complete list. There are many other ways to save money on insurance. Let me know if you have any ideas or other ways to reduce your insurance costs. It is important to have enough insurance. You can save money by only purchasing what you actually need. We don’t think of money we save on expenses or purchases as the same money we earn or get from others. It doesn’t matter how much you have in your pocket if you have $50 extra per month. You will be closer to your financial goals if you save every dollar for yourself. Print this page and follow the suggestions to see how you can make $840 an hour.
