No one likes paying for insurance until they need it, and when you need it you certainly hope you have adequate coverage. Having insurance is often required, and in most instances, a good idea (definitely house and car). However, from time to time it’s wise to revisit your insurance carrier (who issues it) and your coverage to make sure you’re getting the most bang for your buck! Let’s explore a few ways to make sure you’re not overspending.

Cancel unnecessary insurance

From time to time, all of us will probably purchase insurance that we don’t particularly need. While insurance can always be a great safety net, there are certain times when you can end up spending huge amounts of money on insurance that you’re never realistically going to need. This could include extended warranties on electronics, cell phones, or flood insurance when you don’t live in a high-risk flood zone. You should also be careful of taking out schemes that you may already be covered for. For instance, some travel packages can throw in travel insurance, while you may not need rental car insurance when renting a car (some auto insurance policies or certain credit cards will already cover you for this). Take a step back and evaluate the likelihood of a loss, and the amount of loss to figure out if it’s worthwhile to have the coverage.

Shop around for quotes

You can always save money by taking the time to shop around for quotes. The internet makes it so easy to do research and it never hurts to look! Rather than automatically renewing your policy every year, take the time to look at other deals. Many people use broker services to shop around for competitive auto insurance quotes, saving them time and money. In some cases, you may even be able to negotiate directly with insurers – this can help to further reduce costs. About once a year, take the time around renewal to make sure you’re still getting a good price!

In fact, it’s always a good idea to ensure that you are checking with other companies to make sure that you are getting the best possible price. When you come to the end of an insurance policy, you can let some of them go if you no longer require them. You can look at an article featuring the advice of someone like Domonique Rodgers where you will find a whole range of advice about what insurance you need, and how to get the best prices.

Bundle your insurance

Insurance bundles can be a great way to save money on multiple insurance schemes. Some insurers offer auto and home insurance at a discount when bought together. Similarly, you can often bundle health and life insurance. There may also be ways of bundling multiple family members together to save money. Also, having just one carrier makes paying the premium easier, as well as managing it all in one place!

Increase your deductible/excess

The deductible/excess is the amount that you are willing to pay out of your own pocket before claiming compensation. Offering to pay a higher deductible or excess can often lower your rates. You do however need to be careful of setting this too high as it could mean paying a lot of money with your own funds when disaster strikes – which defeats the point of insurance.

Reduce the risk

The most effective way to reduce costs is to reduce your risk of needing to make a claim. For instance, fitting a burglar alarm can often massively reduce your home insurance rates by making you less of a threat of a burglary. Similarly, living a healthy life can make a difference to your health insurance rates – lifestyle changes such as giving up smoking are some of the most effective ways to reduce costs. Sometimes it can be a simple case of the way in which you word something when making an insurance application. For instance, when applying for auto insurance, certain job titles could make you pose more of a risk if they seem as if they may involve a lot of driving.

Insurance is a part of life but it doesn’t mean we need to overpay for it!

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