Depending on what type of insurance plans you are paying for, you might be surprised to find that a lot of your money goes towards keeping them active. However, it’s typically a cost that is justified because you need to ensure that your possessions, well-being and even your life are kept safe. Unfortunately, this leads us to believe that by paying more money for a service, we’re going to potentially get a better deal when we actually need to call upon their services and make a claim.
This isn’t always the case. Sadly, many insurance companies operate the same way and they’ll try to reduce the amount they pay out by citing clauses in their agreements that are in their favour. In other words, they’ll convince you that their plans are right for you, they’ll make you pay ludicrous amounts of protection you don’t need, and when you finally do make a claim, they’ll do their best to pay out as little as possible to keep you happy.
This is, sadly, how insurance companies work. Fortunately, there are plenty of ways to cut your insurance costs without reducing the quality of your plan. If you want to save money on mandatory expenses every month, then here are a couple of tips that you can follow.
Get rid of insurance policies that you don’t need
When you speak to insurance brokers, they’ll typically sell you the basics such as home insurance and life insurance, but they’ll also try to sell you other insurance policies that sound great on paper but don’t actually make a huge difference. For instance, many car insurance companies will add in rental car insurance. The idea is that if you are in a car accident that cripples your vehicle, they’ll help you cover the cost of getting a rental car so that you can keep driving. In reality, very few people rent out a car when theirs is being repaired and they don’t even realise they can rent a vehicle and have the insurance company pay for it.
In short, make sure you know what you are paying for and get rid of insurance plans that make no sense, don’t apply to your situation or simply aren’t needed.
Always compare
With so many insurance companies out there it can be hard trying to tell which group will give you the best deal. This is why it’s important to always look for better deals by using comparison websites. If you feel like you’re paying too much or your friend told you that they get a better insurance policy than you while paying less, then it’s never a bad idea to shop around for a better deal. This could save you a lot of money in the long run and it could offer you a better policy that covers more incidents.
For instance, if you’re thinking of protecting your bike by getting an insurance policy, then consider using an online bike insurance comparison calculator or website to determine if you’re getting a good deal with whatever insurance company you had in mind, or if there are better deals out there. Different companies will use different calculations to determine how much they will charge you, so keep this in mind when making a decision.
Learn what determines insurance costs
When you pay for insurance, most companies will give you guidelines on what you are paying for and how you can reduce the costs. For instance, the more often you drive, the more likely you are to end up in a car accident, meaning that you have to pay more for car insurance. If you don’t have security systems installed in your car and you park it outside instead of keeping it stored in your garage, then it will more likely be stolen, hence it will increase the costs of insurance.
Similarly, not having a security system at home or living in a neighbourhood with a lot of crime will also increase your home insurance costs. However, installing a surveillance system or moving to a better location could drastically reduce your home insurance costs. If you really want to save money on your insurance policies, then ask the company to re-evaluate your policy once you’ve made enough changes that could reduce the price.
Summary
Now that you’ve learned a couple of ways to reduce your insurance costs, you can go out there and start saving money. You might want to contact your insurance company and try to negotiate a better deal before you switch. This is because many insurance companies hate losing customers to their rivals, and you might even be able to strike a better deal just by talking with your insurer. Remember to always shop around, keep an eye on the small print, and get rid of policies you don’t need.
