Insurance is essential for protecting yourself and your family financially. Unfortunately, it can be expensive. For instance, 2021 Statista data shows that while family-covered insurance for fully insured employees costs an average of $21.852, employees who funded their premiums spend $22,510. These figures have continued to increase since 2000, leaving many wondering how they can keep their premiums lower to enjoy insurance benefits. Here are eight simple ways to cut your insurance costs.
- Be sure your health costs are accurate
You usually pay a percentage of your insurance costs through medical billing, deductibles, or coinsurance. This means that inaccurate medical costs can be problematic. It is advisable to examine your medical bills for inaccuracies to ensure that you pay the correct amount. This can help you save money on out-of-pocket expenses and keep your costs low. When reviewing your medical bills, request an itemized billing that includes a description of the prescriptions, supplies, procedures, and other services you are charged for. This would help you get an accurate account of your costs.
- Review your policy coverage
Examine your insurance plan regularly since the rates increase annually. You might want to consider switching to a different insurer if your rates become too expensive. When searching for a new insurance provider, compare similar coverages from reputable firms to avoid a new cheaper premium alternative with fewer or no benefits. You should also conduct ample research to avoid being scammed or going for an even more expensive plan.
- Buy more than one coverage from the same insurer
Several insurers offer discounts when you purchase two or more insurance types. Suppose you want to cover your home and family car. Due to this plan, you purchase both policies without spending as much as you would if you took them from separate insurers.
Some insurers offer loyalty discounts for customers who have stayed with them for a long period. Despite this, it is still worth shopping around and comparing other insurers to ensure that you find the right one for you and determine if such packages are worthwhile.
- Shop for better insurance plans
It is good to shop around since insurance prices differ among providers. It is advisable to get quotes from at least three companies. You can visit or call their offices or check their online resources. Your state insurance department can also provide you with price comparisons from the big insurance companies. The goal of getting insurance is to protect your family’s future and finances, so you might want to pick one committed to providing you with the peace of mind you need.
While it can be useful to obtain quotes from different companies, some companies sell through agents. However, when shopping for insurance, ask for recommendations from relatives and friends and read through reviews from existing clients.
- Drive carefully
Although safe driving may seem common knowledge for every driver, today’s number of in-car distractions is alarming. To keep your insurance costs low while on the road, it is best to be more mindful and limit the risks of accidents and moving violations since they can raise your insurance rates. Depending on your driving record, you can earn driver discounts up to 23% in some policies since points are usually assessed to a driver based on the moving violations. This can lead to paying more for your insurance premiums.
Be aware that adding young or new drivers in the family to your policy can also raise your premiums. Therefore, reinforce the importance of safe driving to these family members. However, if you want greater peace of mind, you might want to check cheap car insurance for young drivers.
It’s important to note that even safe drivers can get into accidents. Making a claim – whether you are the one that caused the accident or not – will raise your insurance rates. You don’t have to make a claim after an accident and you may find that you can fund repairs with savings or by making a legal claim with the help of a car crash lawyer. Generally though, it’s worth making an insurance claim if you’re eligible (you pay to be insured – you may as well use it!). You can still make a legal claim on top of an insurance claim if you are injured.
- Improve your home
Improving your home can result in paying less for your homeowner insurance. For instance, small improvements like better lighting, landscaping, and improved security systems can significantly save your insurance costs. It doesn’t matter if you made these improvements after buying insurance. Also, some of these home improvements can be expensive upfront since it might take years before the discounts match your upgrade costs. Yet, consider it as an advantage for upgrading your home. Go ahead and inform your insurer or agent about your home improvements.
- Negotiate discounts and service costs
You can also cut down your insurance costs by asking for discounts for various services your insurance covers. Some billing departments, doctors, and health care facilities would be willing to discuss lower charges if you volunteer to assist them in their work. So before seeking medical assistance:
- Find out if you have a procedure scheduled for the near future and whether you can obtain a discount for paying in advance.
- Discuss your medical concerns with your doctor. The doctor may be able to reduce their rates if you have a large deductible or other difficulties.
- Inquire whether you can earn a discount for paying in cash.
When it comes to saving money, every cent counts. So you want to look at the options and the policy requirements. Look for healthcare providers who can provide you with the most financial assistance.
- Maintain good credit history
Having a good credit history can help you save money on insurance since most insurers utilize your credit information to determine the cost of their insurance cover. A study has also shown that people who efficiently manage their credit make fewer claims. So if you want to take out credit, only take how much you need and ensure to pay on time. This way, you can keep your credit balances low and enhance your credit score. Likewise, review your credit report regularly and correct any errors as early as possible to ensure your records remain accurate.
Insurance coverage is a great way to protect your family and other aspects of your daily life. However, insurance costs can differ due to several factors, including your state, insurance company, and type of coverage. The last thing you would want is for these costs to take you away from the benefits of issues. Although a few factors may not be under your control, the tips mentioned above can help you save money on your insurance costs.