This page will give you tips to help you save as much money as you can
on insurance. If you already have insurance, you probably should call
your insurance company first and ask them what additional discounts they
will give you before you decide to switch companies. To get the
lowest rates, do your own insurance shopping and assure yourself
of a soft landing in case of disaster.
Insurance quotes on
the Internet are often the lowest you can find, because online insurers have
better high-tech efficiencies and lower advertising costs. State
Farm Insurance is also popular because they provide good service
at very reasonable rates. You might also phone
a national direct marketer of insurance
(i.e. Progressive, Amica, Geico and/or AMAA.) They
save you money by dealing directly with you, cutting out the
middlemen and salesmen.
When buying any type of insurance, always ask
about all discounts that are available.
Here are some common discounts that can help you
save money on many types of insurance policies:
- Raise the deductible to the highest level you can afford.
- Retiree discounts are often available.
- Discounts are often available for staying with one insurance company
for a number of years.
- You can get discounts for getting different types of
insurance policies from the same company.
It pays
to check up on insurance rates every few years, because they go up and down
because of changing demographics and evolving technology. You should
also check rates when your lifestyle changes (i.e. you move to a new neighborhood,
or you get married, etc.) Don't just consult an "independent
agent," because you usually won't get the lowest rates that way (they might
refer you to an insurance company because they are getting a commission
that they're not telling you about.)
What Kind Of Insurance Do You Need?
Most people basically need Life, Home, Auto
and Health Insurance. You may also want to get non-cancelable,
guaranteed-renewable Disability Insurance: you're seven times
more likely to become disabled before retiring, than to die prematurely.
An "Umbrella Policy" is a good idea for well-to-do people; it protects you
against any unexpected disasters that other policies don't cover.
Don't waste your money on small "piecemeal" policies like air-travel insurance, rental
car insurance, or mortgage insurance.
- Life Insurance: Almost all people should get term life insurance,
rather than the more expensive and complicated whole life insurance. You should
specify that the beneficiary should own the policy: this will help you to
avoid the estate tax if you should pass away.
Normally, you should have coverage that is 5 to 7 times your annual
income. To figure your needs more exactly, calculate the value of the assets your family would have
if you should pass away, then subtract that from how much you think your
family would need. That's how much life insurance you should
have. If you're
very well off, you may not need life insurance at all; ask a certified
financial planner about your options.
- Home and Rental Insurance: Get enough insurance to cover
the cost of replacing your home and personal property. Even if
you just rent, you'll probably want some renter's insurance
(it's pretty cheap.) Make sure you know exactly what is
and isn't covered by your policy. Example: After a
major hurricane recently hit North Carolina, many
homeowners discovered that only a fraction of the damage was covered, because
the insurance companies are so afraid that a major hurricane will wipe them
out financially. Document your possessions yearly; take a camera or
camcorder and photograph everything. If disaster strikes, take
pictures of the damage as soon as possible.
- Auto Insurance: Drivers are legally required to carry
liability insurance. You may also want to get comprehensive and
collision coverage, especially if you're not a very safe driver, or you don't
have extensive financial investments to cover a car loss. If your car
is more than 5 years old, you'll probably want only liability insurance.
- Health Insurance: Most people are covered by their employer's
health plan. If you aren't covered, you can save money by buying
health insurance with a high deductible. Then live safe and
healthy, so you don't have to worry about taking a big financial hit.
Make sure that the insurance company is financially healthy. If
the company folds, there's no governmental guarantee that you'll get any
compensation. Visit Insure.com's Insurance Company Ratings and make sure that you only deal
with companies rated "A+" or "AAA".
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Reduce Your Insurance Costs 
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