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Debt > Ways to Reduce Expenses > Insurance |
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The average American family spends about $3,500 annually on all types of insurance. Below are ideas on reducing your insurance costs without giving up necessary coverage. SAVE $1,000.00 PER YEAR ON AUTO AND HOMEOWNERS INSURANCE. Studies show that if you just spend a little time comparing rates you can save about $1000.00 per year on auto and homeowner's insurance. Visit www.progressive.com to compare rates. There are other steps you can take to lower your car insurance premiums even more: (1) raise your deductible so that your premiums will be lower -- but before you do this, make sure you have enough in an emergency fund to pay the higher deductible should you need to; (2) cancel your collision insurance if your car is very old (worth less than $1,000). A good rule of thumb is to cancel your collision insurance when your car is ten years old and worth little more than your deductible; (3) get rid of unnecessary add-ons, such as towing insurance. This typically costs $50.00 per year -- when was the last time you had your car towed?; (4) take a driver's safety course approved by your insurance company to qualify for a discount; (5) combine your homeowner's insurance with your auto insurance and your insurer will likely give you a 10% discount; (6) take advantage of special discounts given to certain classes of consumers. For example, those over 50 years old can get discounted insurance by joining AARP (visit www.aarp.com for more information) -- if you're a teacher, you can get a discounted rate (visit www.horacemann.com for more information) -- those who are currently in or retired from the military can get a discounted rate through Geico -- as much as 15% (visit www.geico.com for more info) SAVE $200.00 ON TERM LIFE INSURANCE. Visit insurance websites like www.term4sale.com and use their comparison tools to find out if you can get a better deal on term life insurance. Rates have been dropping over the last decade and new mortality tables expected to be issued in 2003 will reflect updated life expectancy estimates. With longer life expectancy tables will come even lower rates. How much term life insurance do you need? If you have children under the age of 18, you need at least seven times your annual income. SAVE $600 PER YEAR ON TERM LIFE INSURANCE. If you don't have any dependents, it doesn't matter if you're single, married or retired, you don't really need term life insurance. Get rid of it and save anywhere from $400 to $900 per year. SAVE 5% TO 10% OF THE COST OF A POLICY. If you pay your premiums monthly, you add about 5 to 10% to the cost of the policy since the insurer must do added paperwork Pay your premiums semi-annually or annually and reduce your bill. Similarly, you can also reduce the cost by buying one big policy instead of several small ones. For example, one policy for $500,000 rather than two for $250,000. Other ways to cut costs: -- Buy directly from the insurance company rather than through an agent -- Buy group insurance rather than individual policies -- Avoid insurance that covers only one type of risk (cancer, credit life, flight) as these policies often duplicate your existing policies and are more expensive. CUT YOUR AUTO INSURANCE PREMIUMS IN HALF: Who do you think pays more for auto insurance -- someone with a good credit score, but several traffic tickets and accidents, or someone with a perfect driving record but a low credit score? Surprisingly, it is often the person with the low credit score and the perfect driving record. Why? Because most insurance companies have conducted research that tells them those with low credit scores are three times more likely to file an insurance claim than those with good credit scores. As a result, they often charge those with low credit scores a premium that is two to three times higher than the average. Many consumer groups find this practice unfair and some states have banned it or limit the use of credit scores in determining insurance rates. Raise your credit score and you will save significantly on your auto insurance. |
Credit Kit -- Improve credit score and reduce monthly bills by $200+ Debt Kit -- Settle unsecured debt for less than half of amount owed |
Reducing Expenses: Ways to Save Money on Insurance |
Debt > Ways to Reduce Expenses > Insurance |
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