Insurance costs money, and for a long time to come. You pay your policy premium rates every month and every year for years on end; paying your premiums affects your business, your incomes, your family, and other aspects of your life because you pay your insurance premiums with money that could have otherwise been used for them. Much more than this, you pay health insurance premiums, auto insurance premiums, property insurance premiums, and life insurance premiums – all from the same source of income that you have to support your family and other personal dreams.
And because some people pay as much as $5,000 annually on various insurance covers, it has become quite pertinent to seek ways of reducing payable insurance costs without reducing the level of protection you enjoy. What then are the best ways to reduce your insurance premiums or qualify for discounts without compromising your level and extent of insurance protections?
i. Increase your deductibles: You know what deductibles are, don’t you? Deductibles are out-of-pocket expenses you choose to pay on your own before your insurance company compensates you when accidents happen. For instance, if you have agreed to personally pay $2,000 out of every $10,000 worth of insurance compensation, or agreed to bear the expenses of repairing part of your vehicle while the insurance company bears the rest, then you have paid your deductibles. Agreeing to pay more deductibles automatically qualifies you for lesser premium rates, and the common saying is “the higher your deductibles, the less your insurance premiums”.
ii. Insure all your property with one insurance firm: Although you are free to insure your life with company A, insure your car with company B, insure your health and medical policy with company C, and insure your residence with company D, it is much more economical in terms of reduced premiums to insure all your assets with one and the same insurer. Most insurers will offer you much reduced premiums when you insure all your assets with them, and this could end up saving you up to $2,000 annually.
iii. Take out group insurance: You may also insure all your family members as a single policy holder with one insurer to enjoy discounted premiums. As an employer, you can also take out one group insurance cover for all your staff rather than buying individual policies for them each, this will save you a lot of money with reduced premium rates.
iv. Watch your lifestyle and habits: You must do away with lifestyles that can compromise your health, bring about your own death, or cause harm to others around you in order to qualify for reduce rates. For instance, you must do away with smoking and alcohol, do not over-speed or drive as a car racer, or even engage in habits that compromise your wellness and that of others. The reason for this is because the more insurers consider you as a high risk the more you have to pay to enjoy their protection.
v. Put security measures in place: As a driver, you must go for a driver’s school and have a valid driver’s certificate from a reputable driving school; never be slammed parking or traffic tickets; enjoy good credit rating; and install burglary-proof security and alarm gadgets in car to make it nearly impossible for anyone to steal or vandalize your car and other personal assets.
Photo credits: thinkpanama on flickr