How to save on Insurance

Consider the purpose and define your goal

The insurance is intended to protect your from catastrophes, not from everyday annoyances. Use insurance to protect yourself from things that are not likely to happen, but that would cause financial difficulties if they occurred.

Your goal should be to have the right amount of insurance. If you have too much, you are wasting money.

For example, if you have a $50 deductible on your car insurance, you will probably end up paying the insurance company much more in premiums than they will pay you for benefits. Or if you are young single and have tons of credit card debt, lfe insurance is not a good place to deposit your cash.

On the other hand, if you are a small business owner 40 years and a father of five, temporary life insurace could be an excellent way to protect yourself against the risk of your dying tomorrow. Or if you’re a millionaire liability coverage could save you a fortune if you are sued for the damage it causes when you sink into the back of a school bus.

How to save on insurance

The first thing you can do to save money on insurance is to self-insure as much as possible. That is, reserve your own money to cover minor and moderate catastrophes, if possible.

To do this, try increasing deductibles on your auto and home insurance policies. Then, take the difference between your old premiums and your new premiums every month and put it an online saving you designate as “Self-insurance”. It will not take you long to have more than enough to cover the deductible.

You can also save money on insurance by reviewing your coverage from time to time.

To do this, follow these suggestions :

  • Read their policy. As with all legal contracts, it is important that you read your policy so that you know what is covered and what is not. Pay attention to policy changes that arrive by mail. If you have any questions, ask. And make it a habbit to review your polices from time to time to make sure you understand them (and see if anything has changed).
  • Do not duplicate coverage. Know what polices provide what benefits. If you have an AAA membership, for exaxmple, you do not need tow coverage in your car insurance. And if yourr credit card doubles the guarntess on the things you buy, do not pay for extended warranties. I try to review my polices once a year to remind me of my coverage.
  • Consolidate. Get all your insurance from provider. Insurance companies often give a discount if you have multiple polices with them. In addition, this save you the hassle of having pay more than one company.
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