Cheap Insurance Secrets

Do you want to save money on insurance? It’s not as hard as it seems! While shopping around for several quotes is a great first step, there’s much more you can do. You can spend less and get more of the coverage you need with these insider tips.

Cheap Life Insurance

Life insurance doesn’t have to break the bank. Here are some smart ways to save:

1. Purchase Multiple Policies

Instead of buying one big policy, consider buying two or three smaller ones. For example, one policy can cover you until your kids leave the house, while another can last until your retirement fund kicks in. Staggering the terms can save you money.

2. Research Insurance Companies

Check out insurance companies before committing. Visit the National Association of Insurance Commissioners website at www.naic.org/cis. This site allows you to check a company’s financial health and any complaints filed against them.

3. Ask About Rebates

In some states, insurance agents can rebate part of their commission to you. Look into this by checking online or calling. Even if you don’t live in the state, you may be able to buy insurance there and qualify for a rebate.

Cheap Auto Insurance

Auto insurance can get expensive, but there are ways to save big.

1. Stick to the Legal Minimum

If you don’t own many assets, you may not need more than the legal minimum liability coverage. Some companies push their “company-recommended minimums,” but these are often more than you need. If you have no assets, you’re less likely to be sued, so keep it simple.

2. Review and Update Annually

Once a year, review your auto policy and shop around for new quotes. If you’ve had a ticket, check if it’s past the company’s time limit (often three years). They might lower your rate, but you’ll have to ask.

3. Remove College Kids from Your Policy

If your kids are attending college more than 100 miles away, you might be able to remove them from your policy. This can save a significant amount of money. Just remember, they can’t drive the car when they come home.

Other Cheap Insurance Tips

1. Health Insurance: Join a Group

If your job doesn’t provide health insurance, join a group to get a better rate. Organizations like fraternal groups or local chambers of commerce often offer group policy options at lower rates.

2. Homeowners Insurance: Increase Your Deductible

Consider raising your deductible to $1,000 or more. Insurance is meant for major disasters, not small incidents. By planning to cover smaller costs out of pocket, you’ll save money on your annual premiums.

3. Say No to Credit Life Insurance

Credit life insurance pays off loans like your auto or home loan if you die. However, regular life insurance is much cheaper and provides the same coverage.

Final Tips for Getting Cheap Insurance

No matter the type of insurance, always get multiple quotes and ask plenty of questions. Understand every part of your policy and avoid paying for coverage you don’t need. Be sure to ask about special discounts you might qualify for.

By staying informed and proactive, you can get the coverage you need without spending more than necessary. Cheap insurance is within reach if you follow these secrets!