6 Simple Money-Saving Tips for Savvy Insurance Buyers
Owning insurance is a fact of life. Whether you just have a car to your name or you recently bought a house, you’ll need insurance to help cover them. Unfortunately, when monthly expenses are a little tight, many people choose to cut their insurance services and do without them. But all this does is put your assets at risk. Fortunately, you can reduce the cost of your monthly premiums with these six money-saving tips from financial expert Dave Ramsey.
1. Buy Insurance from an Independent Agent
Primarily, there are two types of people who sell insurance: captive agents and independent agents. A captive agent is one who sells insurance for one company only. An independent agent, however, sells insurance from many different insurance companies. Therein lies the key to reduced insurance rates — competition. Independent insurance agents tend to have more low-priced insurance options because they offer a variety of providers.
2. Be a Loyal Customer
The insurance industry is a competitive one. There are hundreds of insurance companies in your local market that want your business. As such, many of these companies will offer you a discount if you have more than one insurance product with them because they don’t want to lose you as a customer. Additionally, if you are their customer for a long time, they will also offer you a discount.
3. Increase the Cost of Your Deductible
Increasing your deductible will reduce the cost of your monthly premium as well. In general, your deductible is the amount you pay your insurance company if you experience a loss, such as a car accident or house fire. The more “skin” you have in the game, the less likely your insurance company will view you as “risky” client. As a lower risk, they’ll reduce the cost of your coverage, resulting in a lower monthly premium for your insurance policy.
4. Live in a Better Neighborhood
One of the many risk factors insurance companies consider when determining the rate you pay is the neighborhood in which you live. People who live in high-risk areas generally pay more for their home and car insurance. This simply makes sense because those people are more likely to file a claim. Upgrading to a better part of town could help you trim down your monthly payments.
5. Take Measures to Protect Against Theft
In some cases, reducing the instance of theft will reduce the cost of maintaining your insurance policy, which can significantly help with your finances. Many insurance companies give drivers and homeowners a discount when they have alarm systems installed. If you have one, make sure you mention this when you are getting an insurance quote for home or auto insurance.
6. Pay Your Insurance Annually
Insurance companies often give their customers a discount if they make their premium payment annually rather than monthly. Additionally, monthly customers are charged an additional fee for the convenience of paying monthly. Thus, if you pay your home insurance or car insurance annually, you can save in two ways!
Insurance is a critical component of your household’s finances. To ensure you maintain the protections your insurance company offers and without breaking the bank, start employing these six money-saving tips. And if you’re looking for a new agency to do business with, we’d love it if you considered Hal Tiffany Agency, Inc. We are proud to offer our clients competitive rates and great coverage options. Give us a call today for more information.