Tips on Saving Money on your Insurance

February 7, 2012 | Posted By: Daniel Kidd | Categorized in: Home & Auto, Finance
With the start of a new year, you may be looking for ways to cut spending from your budget. Unfortunately, the weak economy can make it very difficult for many families to save money; indeed, it can be tough enough just making ends meet when your weekly hours were cut or you don't get that raise you were expecting.

However, one area of the budget that is often overlooked is insurance rates. Although you may have judiciously saved money in other areas of your budget, you may have completely forgotten about all the money that can be saved by getting new insurance. Whether it's cheap building insurance or health insurance, a little bit of planning can go along way when it comes to saving money.

Compare Companies:

The first step to saving money on your insurance is to go visit a price comparison website. Regardless of the specific insurance you are researching, there is a price comparison website for it on the Internet designed specifically to save you money. Although you may think that all insurance products are the same, you will be shocked to learn that identical coverage from different companies can vary by hundreds or even thousands of dollars a year.

As such, you owe it to yourself to visit price comparison websites to find cheaper coverage for all the different types of insurance that you have. All of these price comparison websites make it easy to type in the details of your desired coverage; once that is submitted, the website will return a personalized list of insurance carriers organized by price. It is surprising, but it can be that easy to save money on cheap building insurance or life insurance.

Raise Your Deductible:

Of course, there are additional ways to save money on your insurance besides just switching carriers. In addition, you can think about changing the terms of your insurance in such a way that your monthly premiums go down. The easiest way to go about doing this is by raising the deductible on your insurance coverage. By accepting more of the risk when something does go wrong, the insurer responds by cutting your monthly premiums to a more reasonable amount.

Before doing this, however, it is important to weigh both the positives and negatives of raising your deductible since this can have profound implications for your budget. For instance, consider the effects of raising your car insurance deductible. If you rarely get into an accident, it may be worth it to raise your deductible since a lower deductible is of little use to you until you actually get into an accident. Alternatively, if you constantly find yourself running into things with your car, raising your deductible may not be best financial move to make.

Regardless of how you ultimately do it, the important thing to realize is that there are many ways to save money on your insurance this year if you are willing to do the necessary research beforehand. That research can be well worth your time when it frees up hundreds of dollars a year for you to enjoy elsewhere.

This is a post by Daniel Kidd from a UK price comparison site, explaining ways in which you can save money on your insurance this year. January is the busiest time for insurance renewals, so make sure you find the right deal for yourselves.
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