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Getting Rid of Those Unnecessary Insurance Expenses
When things get tough, people start looking for ways to cut back on their budgets. Insurance is one way many people cut back and some financial experts advise clients to do so, as long as they can cut back without putting themselves or their property at too much risk. MainStreet talked to several financial and insurance experts, who suggested ways you might cut back.
These suggestions are general and each family or individual should consider all the factors before deciding to cut back on their coverage: homeowner’s and life insurance.
Photo Credit: Getty Images
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Replacement Cost of Your Home
Adam Sherman, CEO of Firstrust Financial, says to look at your homeowner’s policy and determine if your homeowner’s policy covers the original cost of the home or the replacement value.“It is worthwhile to check the insurance requirements by the lender and parameters set by law since home prices and home building costs have declined,” Sherman says.Photo Credit: Getty Images
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Getting Rid of Stuff
Sherman adds that if you’ve recently downsized, you may not need the coverage for personal assets you once had.“Personal assets in the home are often covered within a homeowner's policy," Sherman says."But if you've recently downsized due to the economy, you may have some room to adjust your homeowner's coverage."Photo Credit: Getty Images
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Lose Some of That Life Insurance
“A life insurance policy should be monitored to keep pace with different life stages," Sherman says."If your needs no longer warrant a huge policy, you may be over insured. There also may be room to lower costs due to extended life expectancy rates."Photo Credit: Getty Images
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Insurance Through Your School
If you’re a student or even alum of a college, you should check into the different insurance policies offered through the school or the alumni association.“One of the ways that a smart consumer can save money on insurance is by checking on whether his college or university offers discounts with certain insurers,” says John Egan, managing editor of Bankrate Insurance. For example, Egan says Esurance offers a 15% discount to students and alumni of schools in the PAC-12 conference.Photo Credit: Getty Images
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Auto Insurance Extras
How many years have you had insurance that covers a rental car, towing or roadside assistance? If you add up that extra coverage, you probably could have paid for several instances out of pocket by now. Chris Barr, owner of Barr Insurance, advises to get rid of the “extras” that will not put you in a real bind if you do have an accident.Photo Credit: Getty Images
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Higher Deductibles
All of our experts agree, you should get the deductible that you can afford, but if you can afford to pay a higher deductible on any of your insurance, you should do so. “In many cases, by raising your deductible, you can save upwards of 10% on your auto insurance premium,” Barr says.Photo Credit: Getty Images
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If Your Car is Older
If your car is older: If your car is an older model, Barr notes, it really doesn’t pay to have comprehensive coverage.You may be paying more to insure an older vehicle than what it is worth. “Older vehicles may not be worth protecting,” Barr says.Photo Credit: Getty Images
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Don’t Pay Monthly
While many insurance companies offer you the choice of paying monthly, our experts advise you to pay annually if you can.“Most companies offer a discount for paying by the year rather than by the month or quarter,” says Janet Groene, a writer for SoloWoman RV.Photo Credit: Getty Images
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Use Coupon Codes
You can find just about anything online these days, and that includes your insurance. Where there is online deals, there are also coupon codes for the taking as well. Stephanie Andrade, marketing coordinator for CheapSally.com, says after researching insurance online, promo coupon codes are a good way to save money.Photo Credit: Getty Images
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Bundle and Save
You’ve heard it from your cable/phone/Internet provider and you can also bundle and save on your insurance policies.“There are many insurance providers that are packaging homeowners and car insurance, just like you already bundle your phone, Internet and cable,” Andrade says.“Make sure to ask if this option is available.”Photo Credit: Getty Images
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