Debt Free Destiny

If you are thinking of ways to cut costs to save money, think twice, or three times before you consider cutting your insurance premiums. Some insurance is required by law such as auto insurance. Health insurance is not required, but if you are fortunate enough to have access to it, this should be the last thing you consider changing.

While the cost of insurance is high, the cost to you if you are uninsured and need coverage is exponentially higher.

Although it may seem frustrating to pay premiums for something we hope never to use, it is one of those things in life you just have to deal with. If money is tight, and it is for most everyone these days, consider ways of reducing your insurance costs while still remaining covered in the event you need to it.

Health Care

• Higher out of pocket expenses-Examine your policy and see if you have an option to increase out of pocket expenses. If you are a young, healthy adult you can save a considerable amount on premiums by having a higher deductable and paying more out of pocket for routine health care such as visits to the doctor, while saving the real coverage for costly emergency care or hospitalization.
• Consider all your options-If you are self employed or find your employer’s insurance too costly, consider shopping for private insurance. Depending on your current health you may find a reasonable or lower premium. Do your homework and be sure you completely understand your coverage as every insurer can establish their own requirements and coverage.
• Quit bad habits-Health insurance is based on your overall health and pre-existing conditions can make it difficult to get reasonably priced coverage. So before switching or shopping for insurance, quit any bad habits you have. If you use tobacco or alcohol products, quit or at least cut back. Not only is quitting good for your premium, it is good for your health. If you can’t quit, understand how it will impact your rate.

Auto and Home

• Combine policies with one company- Most insurance agents offer reduced rates when you have multiply policies with them.
• Shop around-The market is very competitive. Do not accept the first offer you hear, you will be surprised at the difference in quotes if you shop around. However, you will want to make sure the coverage is equal if the amounts seem too far off the mark.
• Determine how much coverage you really need-If you have to be one or the other, it is best to be over insured. But do yourself a disservice by not taking the time to really research your policies and understand what coverage you have. You don’t want to be under insured, but you certainly don’t want to pay extra for coverage you really don’t need.
• Are you eligible for discounts-Many agencies will not disclose this information or ask you qualifying questions. You must ask them if there is anything you can do or if you qualify for any discounted rates. Safe driving history or additional safety measures around the house may offer hidden discounts.

There are numerous ways to lower the cost of your insurance. Do some research and shop around. This is one area where lowering your bill is better than eliminating it.