Bundle Up Your Insurance
Sometimes you can get significant reduction on your insurance rates if you bundle up your collective insurances with one company.
Get a few insurance quotes, and bundle up only if you get a good deal.
Pass on Extended Warranties
A $100 two year extension on a $300 product is just not worth it. Warranties are insurance, and you should only insure large amounts which can havoc your budget if occurs. Purchasing a new 300$ product doesn’t fall into this category.
Many stores will try to sell you an expensive warranty. It is a very good deal for them, and a very bad one for you.
In most cases, by the time you need to use this warranty, a replacement will cost less than what you’ve already paid by the time you need it.
Here is what the Here’s what the Washington Post has to say on Extended Warranties:
“The vast majority of extended warranties are never used, simply because most products do not need a repair or, worse, the extended-warranty provider refuses to cover the repair or makes it such a hassle that it makes more sense to pay for it on your own.”
Switch to term life insurance
Insurance is not an investment.
Switch to term insurance instead and use that difference in cost to get yourself out of debt or save it and start building some wealth.
Universal and whole policies are much more expensive and offer a sub par investment opportunity – you’re much better off getting yourself free of a debt burden than spending extra on such things.
Switch to Annual/Semi-Annual/Quarterly Payments
If you’re paying your insurance premiums by monthly installments, then you’re probably being charged a premium of 15% – 20% for the privilege.
In other words, if your home and car insurance bill for the year is $1000, you’re paying up to $200 a year in interest by paying monthly.
Get separate quotes for Annual/Semi-Annual/Quarterly/Monthly installments on your life insurance, as well as on your car’s, home’s and any other insurance you have.
Pick the best deal according to the saving and your financial capabilities.
Increase Your Insurance Deductibles
Although we wouldn’t want to pay a $200 or even $500 deductible, we could.
Most of us however will never have to. The majority of people will pay for auto and household insurance for many years, and will never (or very rarely) use it.
By raising your deductibles you can get a considerable discount on your auto and home’s insurance. A few years of lower premiums adds up to much more than the deductable limit, saving you a considerable amount of money.
Think Before Submitting an Insurance Claim
By submitting a claim to your insurance company you will loose the discount you’re probably getting for a few years. In many cases, the added premiums will cost you more than the claim’s value.
My rule of thumb is that I won’t submit a claim on a loss that is less than twice my deductible. So for a $250 deductible on an auto loss, I’ll pay out of pocket any loss up to $500. Why? The $250 I’d receive from my insurance company is not worth the increased premiums I’m likely to pay. You may want to call your insurance agent to find out how a claim will impact your premiums before filing the claim.
Shop Around for the Cheapest Insurance
The first rule of money saving is to Shop Around, and Insurance is no different. Whether it’s a Car/Home or any other insurance – shop around. The internet has made finding cheaper insurance easy and you can compare hundreds of policies in minutes.
Don’t Automatically Renew Annual Travel Insurance
If you travel more than once a year, you may find that purchasing an annual holiday insurance policy can be cheaper than buying separate insurance for each trip.
Avoid, however automatic renewal. If your policy is about to expire and you don’t have a holiday booked, do not renew it.
By renewing it automatically you’re wasting money on covering an eventuality that won’t happen. Instead – restart the cover again the next time you plane a trip.
Don’t Automatically Renew Any Insurance
Insurance policies are getting cheaper each year. While it is convenient to simply renew your policy, you are probably paying for this convenience.
If shopping around for new insurance every year takes up too much of your time, do it after two, three or even four years.
This advice is good for any type of insurance, including life.
Ask For a Gym Membership Rebate
Some insurance companies give rebates on Gym memberships. Find out if your company has this policy, and take advantage of it.
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