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Insurance. It is something everyone needs and also something that costs quite a bit of money. When it comes time to look over your insurance policies, you want to know where to look to save money. In fact, a lot of people over pay for the insurance they receive.
If you think that you may be throwing money down the insurance drain, consider reviewing your policy and consider these ways to save.
1. Shop around for Prices
It is important that you shop around for prices when you are looking for insurance. No matter the type of insurance you need, each company will take different things into consideration when quoting you.
For instance, you may find that one company quotes you a premium of $800 for 6 months of car insurance while another company quotes you $1,100 for 6 months of car insurance. Before you settle on one company, get prices from a few to see what the cost is and what type of coverage you are getting.
2. Work on Your Health
If you are applying for health insurance, it is important that you get healthy before you get a quote. For instance, if you are overweight or you smoke, you will pay more in health insurance than if you do not. Before you begin looking for health insurance, consider quitting smoking and consider losing some weight so that you are not charged a higher premium.
3. Get the Coverage You Need
When you are shopping for your coverage, only get the coverage you need. If you get additional coverage that you may never use, you are just paying more money per month than you need to.
For example, if you have a vehicle that is only worth a couple of hundred dollars, do not purchase comprehensive or collision insurance for it. This is because the lowest deductible for most insurance companies is $250 and if your vehicle is only worth $500 then it is not worth the price you are going to pay each month plus the deductible.
4. Bundle Your Insurance
Some insurance companies offer multiple types of insurance from car to boat to home and health. When you use one insurance company and purchase multiple policies, you are able to receive a discount on your policy.
You will find that you save quite a bit of money per year when you do in fact bundle.
5. Check for Additional Discounts
You should always check for additional discounts when you are applying for insurance. For example, if you have had good health for X amount of time, you may receive a discount. You may also receive a discount if you are a good driver or if you are in school and maintain a certain grade point average.
6. Learn about Health Insurance
Young adults should learn about health insurance and know their options. There are a variety of health plans available and sometimes it is not always cheaper to go through your employer when purchasing health insurance.
7. Choose a High Deductible
When you can choose a high deductible, you will save a lot of money on your insurance policies. This is true for both health and auto insurance.
For instance, if you choose a health insurance plan with a deductible of $10,000, you will pay hundreds of dollars less per month than you would if your deductible was $0 or $250.
When it comes time to choose a deductible, do not choose one that you cannot afford though. If you know that the highest deductible you can have is $1,000, do not choose one that is $3,000 because you will not receive your benefits until the deductible is paid, which may leave you in a bad financial situation.
When it comes time to shop for insurance, always get multiple quotes for the policies you need and always know what you are receiving for the price. Insurance can be affordable if you shop around and avoid making rash decisions about your policy.
The most important thing to remember when choosing an insurance policy is that your needs are covered and you will not be left without coverage when you need it the most.