At its best, insurance is a way to protect your assets in the event of an emergency. At its worst, it’s a way for insurance companies to drain your bank account with high premiums and exorbitant deductibles. In a perfect world, it would be easy enough to find low cost insurance that is perfect for you. Unfortunately, this isn’t always the case. And sometimes people are left wondering how they can influence the final cost of insurance.
In this blog post we’re going to discuss some of the things you can do to help keep your rates low — from shopping around for quotes, to considering certain policies, or even exploring certain options that may cut down on costs and simplify the process of searching for the type of protection that best suits you.
Tips on how to influence the final cost of insurance
Tip 1: Shop around for quotes
Although you may know at the beginning of your insurance search that certain providers are more expensive than others, you can’t be sure until you have a quote. When you receive a quote, compare the information with quotes from other companies to make sure the quotes they offer are comparable. If they aren’t, work with them to make adjustments and then shop around again.
Keep in mind that many factors go into determining your final costs: your age; your driving record; whether or not you’ve got multiple accidents; and whether or not you receive a citation for an alleged traffic violation. Make sure that any company taking a look at your policy asks how you want to pay for it and then follows up on those requests.
Tip 2: Get the most from your deductible
It may be surprising for you to learn that the deductible you choose can have a direct impact on how much you’ll pay for your insurance in the long run. Consider getting the highest deductible possible when it comes to your automobile policy. Not only will this help keep costs low, but it may actually provide more protection for you than a lower deductible. Again, this is something to discuss with an insurance professional before making a decision.
Tip 3: Reduce risk through asset shielding
You can also reduce risk by protecting assets that wo your current insurance policy under your current insurance policy. There are two ways you can do this: through umbrella policies and through asset protection trusts.
With an umbrella policy, a separate policy covers you and it provides financial security for you and your family. This coverage can also help protect against future loss of income or potential liability.
If you have life insurance in place, a portion of your beneficiaries’ inheritance can transfer into an asset protection trust. The trust will then be used by your beneficiaries to cover their own insurance needs as well as any future losses they may have suffered due to permanent disability or injury.
Tip 4: Manage your insurance coverage
You can also reduce risk by managing the type of coverage that you have with the various insurance companies you deal with. Look into benefits such as gap or no-fault coverage, which is intended for people who are injured in an automobile accident. This will help you protect assets and will pay benefits should you be hurt in a crash.
Another option is to add another level of protection through collision and comprehensive coverage, which will help cover damage to your vehicle after a traffic collision — and it can also provide financial security for you, if required.
Tip 5: Find ways to pay less
Many people choose a policy with a lower deductible – which means they’ll be asked to pay more in insurance premiums. However, there are ways to find lower premiums. One way is to compare quotes from different insurance companies and make sure that you’re comparing apples to apples when it comes to coverage and deductibles.
Another option is to increase the number of miles you drive each year; this will help reduce the number of miles you travel, which could cut down on your vehicle’s value and result in a lower premium. If you drive a lot, but rarely use your automobile for commercial purposes or for intracostal transportation, you may want to consider purchasing an older model that has significantly less value.
Tip 6: Consider special discounts
Some insurance companies may also offer discounts if you are: a member of certain professional groups; a homeowner; or if you’re a member of certain professional associations. Of course, dependent on the type of membership, some policies may be more valuable than others. If you qualify for multiple types of discounts, you should work with an insurance agent to discuss how the different options could affect your coverage.
Tip 7: Look into alternative forms of automobile coverage
Finally, instead of dealing with a traditional automobile policy, you may want to explore other options that will help keep costs down. One of these options is to simply buy a car and then not worry about the cost of insurance.
Another option – and one that is growing in popularity – is to purchase an automobile policy that includes collision and comprehensive coverage. In addition to dealing with the costs related to a crash, this type of insurance will help cover damage done by a natural disaster, such as an earthquake or hurricane. The policy will help with costs if you’re involved in a minor accident that doesn’t involve another driver, which could reduce your overall liability.
As you progress, don’t forget to review your policy
It’s important to make sure that you’re taking advantage of the benefits offered by your insurance company – such as discounts and coverage extensions – while you’re updating and reviewing the products. Ask if there are ways you can learn more.
Also ask about discounts and perks that may be available for those who have driven for a long time or have multiple vehicles. This is something you’ll want to keep track of throughout the year.
We well know that an automobile policy can prove to be a major expense. However, by following these tips, you can work to reduce the costs associated with your coverage. You may even find that there are ways to save money and lower your premium without sacrificing any of the essential benefits that you need in order to protect yourself and your family.