How to Cut Insurance Costs Without Losing Benefits

Disasters happen all the time, and everyone needs to be prepared. Cutting corners on insurance coverage is never smart. That being said, the cost of good insurance is enough to give anyone sticker shock. Fortunately, there are practical ways to lower your insurance premiums without sacrificing quality of coverage.

Make Smart Decisions

One way to lower your insurance costs is to make smart decisions that qualify you for discounts. Most insurance companies give discounts to policy holders who have safe driving records or install smoke detectors in their home. In many cases, doing something small and inexpensive can result in huge savings. Sometimes, a discount applies for seemingly unrelated things. For example, many car insurance companies offer a discount if your student driver makes good grades in school. Find out what you can do to qualify for these types of discounts to save money on insurance without lowering your coverage.

Shop Around Every Few Years

Another secret to paying as little for insurance as possible is to shop around every few years to make sure that you are getting the most coverage for the best rate. Insurance is a competitive field, so the company that offered the lowest rates five years ago might not be the best place to do business with now. Also, you might qualify for more discounts with one company than you do with another. Finally, some companies offer special rates and discounts to new customers only. This means that simply switching insurance companies can save you money. As you shop around and explore your insurance options, try to keep all types of insurance, auto, home, and life, with the same insurance company. You’ll receive a bundling discount and you will only have to deal with one company. So keep the overall picture in mind as you compare rates. One company might be terrific with car insurance but lousy with life insurance.

Make Sure You Are Not Under or Over-insured

Another way to save money on insurance without sacrificing benefits is to make sure that you are not under or over-insured. If you own multiple properties, for example, and need several policies, make sure that the policies don’t overlap. Otherwise, you are paying for your coverage twice. Also, for home insurance, make sure that your policy is only for what you would need to rebuild the house in case of an emergency. For example, if you bought your house for $400,000, you do not need insurance for that full amount because the $400,000 includes the price of the land as well as the house. If your house burns down, your land will still be there. Find out how much you would need to rebuild your house after a disaster and get insurance for that amount.

Having good insurance means that you and your loved ones will be taken care of in case of tragedy. You will have peace of mind knowing that you are prepared for the worst. This peace of mind shouldn’t cost a fortune. Take steps today to lower your insurance rates without sacrificing the quality of your coverage.

 

Daniel Watson is a journalist and publicist for Kanetix.ca, an innovative insurance quoting marketplace. Kanetix.ca offers great advice on tips to lower your expenses. You can connect with Daniel Watson on Google+