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Insurance policies are designed to reduce your financial risk, which is a good thing. However, auto, home and life insurance premiums can cost thousands of dollars a year and put a strain on your wallet. Even so, that doesn’t mean you have to resign yourself to paying expensive insurance premiums.
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Instead, look for money-saving options, including bundled policies to get a discount. According to a recent analysis of insurance rates by Insurance.com, you can save an average of 17% or $730 per year by bundling your home and auto insurance policies.
“Group up by insuring your home and car (even your boat) with the same company, as you may be able to save money if you have more than one type of policy with the same insurance company “said Joe Meisinger, Chief Underwriting Officer and Manager. of national personal insurance products at Travelers. “Also consider bundling your valuables and liability insurance policies to save.”
However, bundling isn’t the only way to save. Check out these helpful tips for getting the most out of your auto, home and life insurance companies, while paying less.
Car insurance: increase your deductible
“Most people choose low deductibles when buying insurance, but this will increase your monthly payment,” says money-saving expert Andrea Woroch. “If your goal is to lower your premium, increasing your deductible is a quick fix. Raising your deductible from $250 to $1,000, for example, can have a significant impact on your premium. Just be sure to set aside the amount you save until you have enough to cover the deductible, and keep it in a separate account so it’s out of sight and out of mind.
Car insurance: opt for usage-based insurance
You could save up to 50% on your car insurance premiums by purchasing usage-based insurance.
“Safe, low-mileage drivers with usage-based insurance can get discounts,” said Felix Maberly, director of Tiger Supplies. “Some insurers have programs to track your driving through a telemetry device installed in your car in exchange for possible discounts. If you drive less than 10,000 miles per year, you could save money with this type of program.
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Home insurance: Reduce your personal property insurance coverage
“A good money-saving tip is to take an inventory of your possessions, estimating the replacement cost of each item,” said RJ Weiss, certified financial planner, licensed insurance agent and founder of The Ways to wealth.
“It is common practice to include personal property insurance in a home insurance policy for at least 50% of the amount you are carrying to rebuild your home. Therefore, a $500,000 home would have $250,000 of personal property insurance. For many homeowners, especially younger ones, who haven’t acquired a lot of property, they can save 5-10% by asking their insurance to reduce the amount of their personal property to the amount they have determined in their inventory.
Home insurance: improve the safety and security of your home
You may be able to save around 10% on your home insurance premiums if you install a home security system.
Look for opportunities to improve your home safety and security,” Meisinger said. “If your home has certain types of fire alarms, burglar alarms, door locks or smoke detectors, see if you qualify for a credit as you have reduced your risk. Smart home tech might also qualify you for a discount (e.g. Ring, smart thermostats, or water sensors), which is easier to install and more affordable than ever.
Life insurance: share your activity and fitness data
“An often overlooked way to get reduced life insurance rates is to share your activity and fitness data,” said Matt Schmidt, co-founder of Diabetes Life Solutions. “Some life insurers allow consumers to voluntarily provide their FitBit or Apple Watch data. Depending on the level of activity of the consumer, you can benefit from discounts ranging from 3% to 6% per year. While these discounts may seem small at first, over the life of a life insurance policy you could potentially save thousands of dollars.
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Life insurance: buy term insurance instead of whole life insurance
Isabella Fitzgerald of Lion Life Insurance pointed out that having a little life insurance is always better than having none. And when you compare the costs of term life insurance to whole life insurance, whole life insurance can cost 10 times or more than the amount of a term life insurance policy.
“Instead of splurging on a whole life insurance plan that costs the earth, buy a short-term plan instead,” she said. “A 10-year plan is an affordable way to protect you and your family, especially if money is tight. But make sure it’s a convertible plan – it will give you the flexibility to spend to a permanent plan in the future when your budget is less constrained.
All policies: annual payment
If you can swing it, you can save money by paying your insurance premiums in advance each year. This goes for auto, home and life.
“You can typically save between 2% and 5% with most life insurance companies if you pay annually rather than monthly,” said Brian McHale, CEO and owner of PolicyMutual.
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