All The Ways To Save

Wednesday, June 26, 2019

How To Save On Every Type Of Insurance

We would all like to be rich and never have to worry about money. But for most of us this isn’t the case. In America, many people still live paycheck to paycheck. So writing that check to the insurance company every month might not be your favorite thing to do. When you purchase the best cheap insurance, your monthly spending doesn’t have to look so dreadful. But how can we get the very best deal on insurance? Maybe you never even thought to ask this question. Or to ask your broker about discounts. But when money is tight, every little penny helps.

Most people don’t understand the insurance policies that they have in the first place. The best way to save money in any aspect of life is to be informed about where your money is going. The average person spends about 10% of their household budget on insurance. Almost 20% is spend on rent or mortgage. Usually Insurance is the third or fourth highest bill to come to your doorstep. With about $5,000 spent annually on different types of insurance in the normal household in America, you can bet that everyone is looking to save. So where do we start this process? What does purchasing the best cheap insurance really look like financially?

Knowing Your Insurance

Here is an equation for you: your budget + the right insurance premium + discounts = the best deal on insurance.

So how can we attain this equation? First, you need to know more about the types of insurance you need. If you are paying for car insurance and homeowners insurance, but aren’t bundling these policies together with one company, chances are you are over paying. Getting insurance from the most popular insurance company might be a mistake. Just because you see a commercial for an insurance company, doesn’t mean they have the best rates. Shopping around will always benefit you. Sometimes the smaller insurance companies are the way to go. It all depends on your needs. When you know what type of insurance coverage you really need, you can save. Shed those extra dollars by getting less insurance, or making a move to another insurance company. But first, know what you are talking about when it comes to the language of insurance.

Here is what you need to know for you to save money on cheap insurance:

For the best cheap car insurance, know the state minimum requirements.

For the state of California for example it is this:

  1. Bodily Injury Liability Limits: $30,000 per occurrence/ $15,000 per person
  2. Property Damage Liability Limits: $5,000 per occurrence

For the state of Florida it’s:

  • Florida state is a “no-fault” state. This means that an individual’s insurance company covers their losses regardless of fault.
  • Florida requires a minimum of $10,000 for Personal Injury Protection.
  • Florida also requires a minimum of $10,000 Property Damage Liability.

In the state of Ohio it’s this:

  • Bodily Injury liability: $25,000 per person/$50,000 per accident
  • Property Damage liability: $25,000

Bottom line, know your state’s laws. And then, understand how much insurance you need. When you have a loan out on your car, you will need full coverage. But what does this look like? It means that you need to have collision and comprehensive coverage. Between these two types of coverage, you will be able to pay for your own car if there is any damage in an accident. You will also be able to get coverage for any theft or minor damages not incurred in an accident. Your bank that lent you the money for the car you have will want you to have collateral against the loan. This means that if something happens to the car, there will be a payout to cover the cost of the loan. The same goes for you if you lease a car. In fact some leases require even more insurance.

There are all of the extras as well such as extra medical coverage, towing and roadside assistance.

Motorcycle Insurance is very similar to car insurance. Because you are out on the road with other vehicles, you’ll need the same protection as a car. Most state’s just require you to carry the amount necessary to cover someone else’s expenses in an accident. Of course when riding a motorcycle, you will also want enough insurance to cover your own costs as well. This means getting full coverage with cheap insurance no matter what type of loan you have out on your motorcycle. Riding a bike is more dangerous than driving a car and when you commute on a motorcycle you put yourself in danger with all of those other cars out on the road. Congestion during traffic hours means a higher risk of injury when in an accident.

Saving on Car or Motorcycle insurance

There are many ways to save on these types of insurance policies. One of the biggest favors you could do for yourself is to be a safe driver and rider. Every year that you drive safely, your premiums will go down. If you have ever had a DUI or revoked license, you are considered a “high-risk” driver and your insurance will increase. But there is hope, because by staying safe throughout time, you will prove to the insurance company that you are less of a risk. You see, all insurance truly is, is risk assessment. So how much of a risk are you to an insurance company.

If you own a motorcycle and take a motorcycle safety course, you are more likely to have a cheaper insurance policy. When driving a car with a smaller engine, again you are more likely to pay less.

Here are some discounts you should ask your broker about today:

  • Discounts for safety courses taken- taking a safety course can help your premiums go down because it proves that you are a safe driver.
  • Marital discounts
  • Good driver discounts- having a driving record which shows safe driving and responsible skills will only help you when shopping for insurance.
  • Multi-car discounts- Not only having multiple cars can help, but the types of cars your family drives could save you.
  • Multi-policy discounts- You may want to consider getting homeowners insurance, motorcycle insurance, car insurance, SR22 insurance and much more from the same insurance company.
  • Association discounts
  • Education discounts
  • Occupation discounts- Depending on what kind of job you have and how far you need to commute for that job could make a difference in your policy choice and price.
  • Excess vehicle discounts
  • Mileage discounts- Keeping low miles on your vehicle should keep your premiums lower.

Homeowners insurance

Homeowners insurance is different for everyone. Because there is no law making it mandatory that you carry homeowners insurance, there is no minimum amount necessary depending on the state. However, almost 90 percent of all homeowners choose to carry this type of insurance. And most banks will want you to have it. To save the big bucks on homeowners insurance, you will want to adjust some things in your home.

When you carry a large loan such as one for a house, your are talking about being liable for hundreds of thousands of dollars. And because the bank technically owns most of your house, perhaps even 90% of it, you’ll want to protect the home for the full value in the current market.

So what is that?

Here is an example of what coverage you should have no matter what type of home you buy:

  • Damage to your home, including permanent structures on your property—unless your policy specifically excludes the cause of the damage
  • Damage to personal property, meaning the items in your home that are not attached to the dwelling, due to causes outlined in your policy
  • Liability coverage for legal matters or accidents that occur on your property
  • Loss of use, which allows you to maintain your lifestyle at another residence while your home is being repaired without incurring additional costs
  • Limited coverage for items such as stolen jewelry—the amount of coverage varies depending upon state of residence, and you always have the option to increase this coverage.
  • When you have a pool you will need to purchase even more liability insurance. Why? Because pools are considered very dangerous especially to children. You will also need to place a fence around your pool for a better rate.
  • If you have dogs that are considered a “dangerous breed” such as a Put Bull or German Shepherd, you may consider upping that liability insurance as well.
  • There is also pet insurance, which can be helpful when you have furry loved ones in your home.

Savings

To save money on your homeowners insurance policy you should first make your home safer. Anytime you can prove to the insurance company that your home is well protected, your insurance premium should go down. Put in a home alarm, a deadbolt lock, or even an auto light out on the front of your garage. All of these things deter burglaries. Yes, living in a safe neighborhood helps, but we don’t all have that luxury. So do what you can to stay safe. Make a list of all of the valuables in your home. You might be surprised by the amount of stuff you own! This also means possibly videoing what your house looks like. Technology and jewelry are two of the top items that are likely to be stolen from any home.

Here are ways to save on homeowners insurance:

  • Monitored home alarm system- having an alarm system could deter burglaries and looks great to insurance companies.
  • Doors fortified with security locks- having a deadbolt lock is a sure-fire way to save you money.
  • Smoke detectors- this is not only a super safe idea for your family but could literally save lives.
  • Sprinkler system- these are more expensive to install, however this could save you money and pay off if something in your home catches fire.
  • Gated community- Living in a gated community usually means a safer environment in general.
  • Retirement community- retirement communities usually have their own security in place.
  • Newly purchased home- Newly purchased homes usually come with sprinkler systems, smoke detectors and good quality locks.
  • Age of home discount- depending on the age of your home, you could save on your insurance.

Health Insurance

We all deserve to have great health insurance. But how can you save money on this type of insurance. Health insurance policies are a little more complicated than other policies because there is so much involved. You might be buying coverage for just yourself or for your whole family. Health insurance depends on so many things such as how much money you make annually, how much insurance you are looking for and how much your deductible is. Maybe you get some coverage for medical from your work. This is usually from a private insurance provider. Some of you may be eligible for government assistance. And many people use Medicaid which is a government funded health coverage system. Costs can vary wildly between policies. Health Insurance Professionals we can help you find all the possible discounts available to you.

Here are some ways to save:

  1. Cut your prescription costs, which is your out of pocket costs. To save money, you can order your medication in bulk.
  2. When you upgrade your prescription, keep your old glasses. Frames add up to almost half of the cost of your glasses. Just replace the lens.
  3. Use an online doctor or WebMD for your more mild cases. Sometimes tele-doctors are included in your insurance plan.
  4. Always look twice at your medical bills. They could have missed something, or added something. Be thorough.
  5. Emergency room visits are the most expensive. Try to avoid them. If you can wait to get in with your regular doctor, this is the best solution for saving you money.
  6. You can always get free preventative screenings so use them.
  7. Try to keep your premiums low by using a higher deductible.
  8. Shop around and ask an insurance broker how you can stay inside your budget.
  9. Practice living healthy and preventative care. This is the best way to cut costs on going to the hospital.

Savings For Everyone

Bottom line, one of the best ways to save on any type of insurance is to first call an insurance broker and talk about options. When you have a budget, most insurance agents are able to help you reach your insurance goals without breaking the bank. This is one way to save on any cheap insurance purchase.

When you go to talk with a broker or shop online, make a list of everything you want to have covered in your insurance policy. Be realistic and understand what each type of coverage can do for you. If you can do without a certain coverage, then cut it. There are recommended “extras” such as uninsured motorist coverage on a car insurance policy which can really save you money in the end. This extra coverage only costs a few dollars more every month but could save you thousands if you are hit by an uninsured driver.

Talk to your spouse and family about ways you can spruce up your home and make it safer. And if you are in the market for a new home, try your best to buy in a safe neighborhood. Your zip code means a lot when shopping for insurance.

Saving is important, so make the choice to save today and learn all there is to know about insurance and your needs.

 

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