Making Insurance Affordable

Introduction

Have you ever sat down and examined all your insurance policies? You will be surprised at just how many insurance policies you have. This of course may spark a number of questions about insurance. Why do you have so many policies? Are all these really needed? The last thought in your mind will probably be whether you can make insurance affordable. Yes, you can make insurance affordable by examining the types of insurance policies you carry, deductibles and whether you even need the insurance.

 

 

 

You buy an insurance policy, which is a legal contract to provide a specific type of financial protection or coverage. If or when you suffer a loss that is insured, you will file claims and the insurance company pays you the benefit you are entitled to. In essence, insurance is used to protect you from major losses that you are not prepared to cover such as the loss of an automobile or home.

Most insurance works the same way whether the coverage is for auto insurance, homeowners' insurance, life insurance or health insurance. When you buy an insurance policy, for a specific amount of money, you can pay for the policy on a yearly, quarterly or monthly schedule. Paying monthly or even quarterly may make insurance affordable.

Deductibles are another part of insurance policies. Most policies have a specified deductible that you choose or the company decides. Deductibles are what you must pay before the benefits kick in. Choosing a smart deductible amount based on your financial affairs can make insurance affordable.

Making Insurance Affordable

Check all your insurance policies and note what the deductibles are for each one. If possible, increase the deductibles on policies where applicable. For example, when you increase the deductible on the current policy, the premium should drop. Subtract the difference between the new premium amount and what you were paying and save it. Start a saving account specifically for insurance deductibles. The money you save between the old and new premium will eventually be enough to pay the deductible on one or more policies should the need arise. If you do this for several policies, you will save a lot of money.

Get rid of duplicate insurance coverage and make insurance affordable. This may take a bit of thinking and research to discover duplication, but many people find themselves paying for the same service or coverage in two different places. For example, if an auto insurance policy already covers towing and you also have an AAA membership, you are probably paying twice for the same coverage.

Consolidate insurance coverage under one provider. Most insurance companies offer a good discount if you insure your home, auto and boat. Try not to file claims if it is really not necessary. Most of the time insurance premiums sky-rocket once a claim is filed and that will cost you more.

Comments

Most Recent Articles