Over the last few weeks we’ve talked about how insurance is an important safety net for your finances, whether it’s life, health, home, or auto. This week is the final article in our insurance series and we’re wrapping up with several ways to save on the premiums you pay so you can afford the coverage you need without breaking your budget.
To begin, here are three ways to save on almost all your policies:
1- Bundling. This means buying several different insurance policies from the same company. If you buy your auto, homeowners, and disability insurance from the same insurance company, they save on administrative costs and can pass those savings along to you.
2- A Good Credit Score. Insurance companies calculate an “insurance score” for each person they insure. This includes how a person manages their financial affairs, which they estimate by using your credit score. The higher your credit score, the better the rate you pay for your insurance.
3- Deductible. The lower the deductible (the amount you pay before insurance pays), the higher the premiums (monthly cost) and vice versa. If you select a high deductible (and lower premiums), make sure you keep the amount of the deductible in a separate account for when you need it.
Ready to review more ways to save on your insurance? Read our full article here.