Whether it’s car insurance or health insurance, both are usually really expensive and honestly? They can be really confusing. High deductible or low, premium features or no? It’s enough to make your head spin. While I can’t give you specific advice on what you should choose, I can give you a few tips to help you save.
Always take a 2nd (or in some cases), a third look at what you’re really paying for. Companies in general have a really bad habit of hiding charges that you otherwise wouldn’t think to look for. Take a close look at your bill, line by line to see what you’re being charged for. If you aren’t sure? Ask. Another thing to look for is whether you’re paying for a service that you don’t use. If you have roadside assistance with your insurance company but you also have Triple A, drop one of them to save. Why continue to pay for something you absolutely will never use?
Shop Around –
This past year when I went after lowering my car insurance, I started shopping around. Lo and behold, I was able to save myself $264.00 per year just by switching. The thing is though? I never would have guessed that our current company would have been cheaper. We made the switch and never looked back. Taking a look at what other companies offer also gives you a second chance to re-evaluate what your family needs or doesn’t.
Pay semi-annually or annually –
Paying your bill monthly can cost you a few hundred per year extra. Instead, pay your bill every twice a month or once a year to save. When we pay our car insurance bill once a year we pay almost $600 less than we would if we were to pay monthly. To make sure that you have the expense in your budget, figure out what the annual charges are per month (charge divided by 12) and pay that amount to yourself once a month. At the end of the year, you’ll have the full amount ready to pay!
Go for a higher deductible –
I know it seems counter-intuitive, but paying a higher deductible usually means paying less per month or year. To combat higher out of pocket prices, be sure you keep a separate savings account for them and to save your receipts. You may be able to deduct some of those out of pocket expenses on your taxes.
Insurance is one of those must haves in life. Use the tips above to save a bit on them and if you have any others that I missed, I’d love to hear them! We could all stand to save a little bit more!