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Archive for December, 2011

Tips to Save Money on Insurance

By On December 13, 2011 Comments Off on Tips to Save Money on Insurance

One of the key aspects of good money management is to protect yourself and your possessions against infirmity, damage and loss. Insurance is a great way to reduce the risk of any serious monetary burden in case something happens to you or your assets.

Typically, whether it is a self-insurance or conventional insurance, people pay premiums to an insurance company in order to cover the possibility of a misfortune in the future. Insurance companies also make their profits from these premiums you pay. Therefore, it is imperative to consider certain things carefully if you want to save money on the insurance premiums. Here are a few tips for saving money on your insurance.

Shop Around

Scrutinize the prices of premiums charged by different insurance companies carefully. When it comes to comparing premium prices, look at the coverage each insurance policy provides (for instance, some companies automatically include flood insurance, while others don’t), check the extras and inspect the types of discounts offered. You need to pay special attention to multi-policy discounts as comparing them is probably the most difficult task.

Many insurance companies offer discounted premiums to people who shop online. However, you should contact the company’s office before selecting an online offer to make sure that you are getting all the discounts offered by the insurance company.

You will come across many websites that offer all kinds of insurance policies when you shop around online. Make sure that they provide quotes from a broad range of insurance providers and also check that these providers are not backed by the same insurance company.

Inquire About Discounts

Several insurance companies offer different types of discounts. Make sure to inquire about the discount available to you. These discounts include:

New Customer Incentives: Many companies offer incentives to attract new customers. It is recommended that you should check the quotes online from time to time to find out this type of special discount.

Loyalty Discounts: You may be entitled to loyalty discounts if you have been a customer with an insurance company for more than a year.

Security Discounts: If you have installed security equipment such as anti-theft devices, burglar alarms, fire alarms, deadlocks, etc. you may get this kind of discount.

Multi-policy Discounts: If you have multiple insurance policies from the same company, you can get a multi-policy discount.

Pay Your Premiums Annually

You can save some money if you pay your premiums annually instead of monthly.

Increase the Amount of Access

The excess is the sum of money you need to pay before filing a claim. For instance, if the excess on your insurance policy is $250, and you file a $500 claim for a stolen laptop, then you will be required to pay $250, and the remaining $250 will be covered by your insurance company.

Decide the excess amount that you can pay comfortably in case you have to file a claim. While one can’t know the future, but if you don’t file a claim, then you can save a considerable amount of money over the years by increasing the excess. However, if you have to make a claim, then the amount you saved on premiums could be little in comparison with the excess you need to pay.