When you’re looking for ways to cut down on your regular spending, one area that people often overlook is the cost of insurance. Paying for insurance is something that we all need to do, but it can often seem like a waste of money if you don’t need to make a claim. It can feel like you’re just giving money away every year. Of course, if you didn’t have insurance in place and some catastrophe would occur, covering the costs and damages of the loss without insurance would make the relatively low cost of premiums seem like a drop in the ocean! It’s better to be safe than sorry.
Comparing Insurance Quotes
So, although none of us likes paying for insurance, it is clearly worth it – at least for some types of policies. Although it can be expensive, there are still some deals to be had if you’re willing to seek them out. The most obvious starting point is to get a few different quotes so that you can compare them and see which offers the best coverage at the best price. You need to be comparing apples to apples. For example, when looking at home insurance quotes, in order to make a fair comparison, you should ask for the same level of coverage from each insurer, offering to pay the same deductible and including the same optional extras. You also need to check around at a lot of places for a proper pet insurance comparison.
This should give you an idea of whether or not you are being charged fairly by your current provider. However, if the quotes are still coming in at a higher than you had hoped for, look at where you might be able to reduce your costs.
For instance, many insurers will offer a discount on a combined contents and buildings insurance policy rather than the price you’d get on separate home contents and buildings insurance quotes. Similarly, some insurers offer a discount to multiple policy holders – so it may be in your interest to put your car, home, travel and pet insurance all with the same company.
Other Ways to Reduce Insurance Premiums
Another way to reduce your premiums is to consider increasing the amount of your deductible. This indicates to the insurer that you are unlikely to be filing lots of small claims – and that you present less of an insurance risk. You can also make sure that the contents coverage you are being offered is not too high in value; many insurers offer a standard level which often exceeds the value of your possessions.
Finally, look at taking out optional features on your home insurance – like accidental damage coverage, home emergency coverage, and personal possessions coverage. These all offer potential benefits to the policyholder, but will increase the annual premium costs. You need to weigh the possibility of how likely you are to need any of these extra features and whether it’s worth the extra cost or not.
Even if you only manage to shave a little off your premiums this year, it’s still worth your time to compare quotes. There are always better deals coming up – it’s just a question of finding them. And, you may even find that your current insurer will match the cheapest comparable quote you have in order to keep you as a client. The new year just started, so there is never a better time than now to compare.