Saving Money on Insurance

In a time when many people all scraping the bottom of the barrel to survive, why on earth would we worry about insurance? Normally we take care of the insurances that we are required by law to have and when we are financially sound, get the “extras”. So how am I saving money? Let me show you a couple of ways to save money on all the major types of insurance.

Most of the major insurance companies compete pretty hard for your car and home insurance. Shop around and see what could save you a lot of money. Insurance is one of those things you can switch instantly in most cases, so check prices frequently to see if a company you looked at before has gone down in price now. Yes you do get what you pay for even with insurance, but all the major companies have different claims experience. This means one company might be cheaper for you, but not for someone else depending on your specifics. Don’t buy from the company that has only been around a few years, or advertises only after 11:00pm. They will probably not have good customer service or claims help.

Health insurance is going to go up again next year, so run some prices now and try to get locked in if you have an individual policy. Most people have insurance through their employer. If you are a business owner, there are a lot of options aside from just getting more quotes. You can put in place a bridge program that allows you to have a higher deductible plan. The bridge program will pay for any deductible amount you choose up to $3,000 and reduce the cost of your insurance by having a high deductible. If you choose to cut benefits altogether, you can offer optional benefits that are often deducted pre-tax. This gives your employees minimal coverage, but reduces your payroll taxes at the same time. You might say, “I’m just a little guy and can’t do anything about it.” Get to know your HR person. Suggest some of these things to them. Many companies are not aware that optional benefits are available to them.

Optional insurances: life, disability, and long-term care. Insurances that are not required by law, but the events they insure devastate a family’s financial well-being. Could you afford to retire today? If you don’t have disability insurance and get in an accident, you just involuntarily retired. You probably don’t have long-term care insurance either, so your spouse also just retired. If the bread winner passes away, what happens to the ones left without their income? Life, disability, and long-term care insurance are critical in times of financial strain because of what could happen without them. I hear stories every day of people who waited just a little too long to decide on that life insurance policy. The way our society is setup does not allow for individuals to go without life insurance. Most of us would probably carry car insurance even if it wasn’t required especially if you have used it. If you do have a life insurance policy that you bought several years ago, check the newest rates. Rates are low right now and you can switch policies at any time.

My advice in these times of financial strain: Check and recheck your insurance to make sure you have the companies you like, the price you can live with, and the coverage that you can sleep at night if anything should happen.