How to Trim Your Car, Home and Health Insurance Premiums
Some types of insurance are required, such as your auto insurance and your homeowner’s insurance. Even without a lender’s requirement for home insurance or your state’s requirement for auto insurance, you may understand the true financial benefits associated with purchasing coverage and maintaining an active policy. Home, auto and health insurance are among the most common types of insurance that people purchase, and they are all designed to help you pay for unexpected expenses. In some cases, coverage can save you thousands of dollars or more. However, the cost of insurance premiums can be substantial, and you must pay your premium regardless of whether you actually use the insurance or not. These are some effective ways to save money on your premiums so that you can get the coverage that you need. Choose a Higher Deductible: When you buy home, health or auto insurance, the decision about the deductible amount is yours. However, there are usually some upper and lower thresholds provided by the insurance companies. For example, with a homeowner’s insurance policy, you can usually request a deductible that equals one to two percent of the replacement value of the home. You could also set a reasonable fixed dollar amount, such as $2,000. Remember that a higher deductible amount yields a more affordable premium. When choosing a higher deductible, do so with care. When your deductible is too high, it is not affordable to file a claim as needed. A smart way to combat this problem and still enjoy the benefit of a higher deductible is to increase your savings account balance accordingly.