Insurance is a necessary evil, but it’s also a budget buster. Between paying for life, health, home and auto insurance you barely have anything left for your life, health home and auto. But, if you’re willing to put in a little cyber-legwork, you can find the best deals on insurance.
♦ Talk to your agent
Talk to your insurance agent and see if they can get you better rates. It’s much cheaper for them to keep you as a customer at a lower rate than it is to find a new one. Compare prices with a few other insurance companies and have those rates ready when you call your agent. Some companies will price match. See what your agent can do for you.
Look hard at what your policy covers. You may be paying for things you don’t need. As always, consider increasing your deductible.
♦ Shop Around
While it might not seem that way, the insurance business is very competitive. That competition means better rates are out there. There are several comparison websites that can help run the numbers.
Life: Life insurance is expensive and confusing. There’s whole life, universal life, variable life and term. It’s a very high commission product, hence the super pushy salesmen. Don’t let them influence you and don’t let fear be your guide. Spend some time working out what type of plan is best for you.
Health: The National Committee for Quality Assurance (NCQA) offers a helpful Report tool that’s a good place to start. Quote aggregators like eHealthinsurance.com can give you side by side plan comparisons.
Auto: Comparison shop and don’t get more coverage than you need. Find out what’s required by your state and build from there. If you have assets, you need insurance to protect them. That’s what insurance is for. Consider the age and value of your car when looking at collision insurance. If you drive a clunker that’s not worth much, don’t waste money on collision.
Home: Shop around. Sensing a theme? You can also think about raising your deductible. According to Money increasing your deductible from $250 to $1000 can save you 24% on your premium.
Many companies offer multi-policy discounts, so be sure to ask about them.
Finding the best deals on insurance starts with knowing what it all means. Brew yourself some strong coffee and spend some time learning about insurance. The only way you can know if you’re getting a deal is to understand what you’re paying for. Investing a bit of time upfront can save you down the line. It’s painful, but worth it.