Protecting yourself, your family, and your belongings is key to maintaining financial security, and having insurance policies are essential to making sure that happens. There are ways to find a policy that provides good coverage at a lower premium, which is the amount you pay for the coverage. Here are a few tips to help you get the coverage that makes sense for you – and your budget:
- Eliminate outdated coverage. While having full coverage is important, some policies become less cost-effective over time. For example, if your car is older, has high mileage, or is in poor condition, consider dropping collision coverage, if you own the car outright. The amount you would receive if an accident occurs may not be worth the amount you pay in premiums.
- Bundle your policies. Combining different policies, such as homeowners and auto insurance, with one insurance provider is called bundling. Many insurance companies will give you a discount for bundling multiple policies with them.
- Ask for a higher deductible. The deductible is the amount you have to pay before your insurance company begins to make payments on a covered event. For example, if you have a $1,000 repair after a car accident and your deductible is $250, then you would pay $250 and your insurance company would pay remaining $750. Purchasing a policy with a higher deductible can cut the cost of your insurance premiums. If choosing this option you should make sure you have adequate cash reserves to pay for the increased deductible.
- Get multiple quotes. Prices for the same coverage can vary from one insurance company to the next. Review your insurance coverage to know what you need and then shop around before you choose a policy and company.
- Make insurance payments on time. If you miss a payment, your insurance company could cancel your policy, possibly resulting in higher rates for a new policy. If you can’t pay the full amount due, consider contacting the insurance company to determine if a partial payment can keep your policy active.
- Pay premiums in a lump sum. If you can pay your insurance premium all at once, rather than in monthly or quarterly installments, you may be able to save money by avoiding service charges.
Protecting what’s important can be affordable. By cutting out unnecessary features and implementing new savings tactics, you can reduce your insurance expenses and keep the coverage you need.
Empower yourself with financial knowledge
We’re committed to your financial success. Here you’ll find a wide range of helpful information, interactive tools, practical strategies, and more — all designed to help you increase your financial literacy and reach your financial goals.
My Financial Guide
Investment and Insurance Products:
- Are Not insured by the FDIC or any other federal government agency
- Are Not deposits of or guaranteed by a Bank
- May Lose Value