Money / Financial Planning
When you buy insurance, you’re paying for something you hope you never need to use. It’s a lot of money going out each month, and you ponder cutting back.
Your auto and home lender require you to carry insurance. But what about other, non-mandatory coverage? Think about what could happen if calamity struck and you didn’t have insurance to help you cover your bills.
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Eliminating insurance could prove impossible or unwise. Still, you might not need to pay quite so much for your premiums. You do have options, and now is the ideal time to review your coverage and ask the right questions.
The Big Four
Car, homeowners, health and life insurance are the most common types of insurance. Fortunately, you can employ some smart tactics to save on the monthly premiums.
If you’re buying a new car and weighing different models, ask your agent how much each will cost to insure before signing the contract. If you drive an older car that has little monetary value and you own it outright, paying for collision and/or comprehensive insurance might not bring value in case of an accident.
The Insurance Information Institute says that could be a strategy if the value of your car is less than 10 times the insurance premium. Search Kelley Blue Book to learn what your vehicle is worth.
Other tips from the III:
- Compare rates among companies
- Increase your deductible
- Ask about low-mileage discounts
- Bundle your home and auto insurance
- Take a defensive driving course
You also will save on your homeowners insurance by comparing rates, raising your deductible or bundling it with your auto policy. And you might have made improvements that qualify for a discount.
Do an annual checkup and let your insurance agent know if you added a security or sprinkler system, upgraded to storm shutters, bolstered your roof or made other safety or disaster-resistant changes. If you were insuring an expensive item, such as a piece of jewelry, and no longer have it, let your agent know to remove it from your policy.
Also, discuss any life changes. Now retired and over 55? You could qualify for a discount, according to the III.
Injuries sustained in a car accident or a fall from a bike, for example, could leave you with thousands of dollars in …….