How Can I Save Money on My Insurance?
Whether it’s for auto, home, health, or anything else, insurance can be a valuable financial tool. However, all that insurance can soon add up to a significant monthly payment. Due to this, it’s a good idea to look at ways some cost-saving strategies for insurance.
Thankfully there are several strategies that you can employ to have a little more cash in your pocket but still have all the coverage you need. Here we look at 12 ways to start saving money on insurance.
12 Tips for Lower Insurance Costs
Want to know how to reduce insurance premiums? Here are a dozen money-saving techniques for insurance policies to help you do just that!
1. Bundling Insurance for Savings
One of the easiest ways to save money on your insurance is by bundling up your policies. Many insurers will offer you discounts should you purchase multiple policies from them.
For example, one of the most common bundles is to put together your home and auto insurance but you can combine many other types too.
While bundling can save you money, there are other benefits too. It simplifies your insurance management and makes it easier to keep track of your policies.
2. Shop Around and Compare Quotes
The insurance market is competitive and there are many great companies out there who offer a wide range of insurance products. Not only that but all of these products are going to come at different rates.
It’s a great idea start comparing insurance quotes for cost efficiency. There are even online comparison tools which can make your job even easier.
Another great idea is to use an insurance broker. They will do the work for you and find a quote that not only fits your budget but also gives you the right level of coverage.
3. Raise Your Deductibles
To prevent unnecessary and small claims, you’ll need to pay a specified amount to the insurer before the coverage kicks in. This is called your deductible.
Simply put, you need to raise your deductible as lowering deductibles for insurance savings won’t work. This is because you’re giving the insurer more confidence that you’re less likely to get a claim and compensating them if you do.
While this is a simple and easy way to save money, the risks are obvious. If you need to ensure the deductible remains affordable as otherwise you’ll be stuck with a policy that you can’t use.
4. Discounts for Insurance Coverage
Many insurance companies will offer various discounts and it’s a good idea to explore them. The exact discount can depend on the type of insurance you’re choosing but some examples are safe driver discounts, student discounts, discounts for security features, and more.
It’s also common to get a significant discount for paying for your premium in full, rather than in monthly payments.
5. Maintain a Good Credit Score
Insurance policies are loans, of sorts. You are given a policy worth a certain amount and agree to pay it off in monthly installments. Due to this, you’ll be credit scored in the same way as if you were getting a loan or credit card.
If you have a poor credit score, then you’ll be seen as a higher risk of missing payments. Maintain a good credit score by paying your bills on time, not getting too many things on credit and ensuring your credit report doesn’t have any errors.
6. Consider Policy Reviews
You should always review your insurance policies to prevent paying for things you no longer need. For example, you may have paid off your mortgage and feel as though you don’t need to renew your term life insurance.
Another example would be if you no longer have a high value item in your home that requires additional coverage. A policy review can prevent paying for insurance you don’t need.
7. Practice Safe and Responsible Behavior
Quite a few types of insurance can give you discounts for either safe or responsible behavior. For example, a clean driving record will mean a lower auto insurance payment. Equally, a healthy lifestyle can cut down on life insurance costs.
Whatever type of insurance you’re interested in, see how you can reduce your risk and lower your premiums.
8. Ask About Usage-Based Insurance
This one is solely for auto insurance. If you’re a safe and responsible driver, then usage-based insurance can be a great idea. Here they will use telematics to judge your driving habits and safe driving will be rewarded with safer premiums.
9. Consider Your Coverage Needs
While you’ll always want to ensure that you have the adequate amount of coverage, sometimes you’ll paying for some things that you don’t need. Assess your specific needs and only pay for add-ons that are relevant to your circumstances.
10. Take Advantage of Employer-Sponsored Plans
Many employers will offer group insurance plans for the likes of healthcare or life coverage. These employer-sponsored plans often come with a discount that you couldn’t get elsewhere to make them cheaper than individual policies.
Along with employers, you may also find such plans with professional organizations, alumni associations, or affinity groups. It’s worth checking if you’re eligible for any such group discounts through your employment or any other affiliations.
11. Install Safety Measures
Adding safety measures can reduce the cost of your auto or home insurance. Fire alarms and security cameras can reduce the cost of your home insurance while advanced security features and secure lock-up can reduce your auto insurance.
12. Maintain Continuous Coverage
Our final tip is to maintain continuous insurance coverage. This will show to insurers that you are a responsible policy holder and can be trusted. Any gaps in your coverage can lead to higher premiums and therefore it’s best to keep them active.
Final Thoughts
We hope these 12 Ontario insurance cost-saving tips have given you some great ideas on how you can save yourself some money on insurance.
If you want a broker to see how you can get the best insurance deals possible, contact Ron Johnston Insurance today and we’ll be happy to see how we can help.