Are Insurance Premiums Keeping You In Debt?

by Ryan Yates

You might not realize how much money you have tied up in insurance, and it’s not as if you can just cancel all of your policies. You need automobile, home, life, and health insurance at a minimum, and if you company doesn’t offer the last two as part of your benefits package, you may be drowning in insurance debt. Rather than go without and suffer any resulting consequences, give this line item on your household budget a quick audit to see if there are areas where you can realize some savings.

Automobile Insurance Savings

Local insurance agents will tell you there are numerous ways you can save on your automobile insurance. If you are a young driver, you might not have as many cost-saving options, but there are a few tricks that might help you, too. No matter your age, check your annual mileage to see if you fall under your policy’s low-mileage cap. If you do, you’ll pay less for your coverage. Talk with your insurance agent about driving courses. Seniors in particular can earn lower insurance premiums by taking a driving course and graduating with a certificate.

Purchase rather than lease your car. If your vehicle is paid off, you don’t have to carry full coverage in most states. If you lease your car, you might save money on monthly payments, but you’ll likely more than make up for that with full auto insurance coverage, a requisite to your lease contract. Finally, talk with your agent about anti-theft, safe-driver, and any other available discounts. If you have a car alarm, there is less chance your vehicle will be stolen. If you pay your premium in one annual sum, you’ll also save money that can go back into your home’s budget.

Home Insurance Savings

As with a car alarm, many home insurance carriers offer policy discounts if you have a burglar alarm installed in your home. Make certain your carbon monoxide and fire detectors are operational, too, and see how much savings that will fetch you. To stay out of debt, many subscribe to the “If you don’t need it, don’t buy it” philosophy, and this will save you money on your home insurance coverage. The more stuff you have, the more insurance you need, especially if you purchase a ton of valuable things. Live moderately – no, live modestly, and see how easy it is to save on your homeowner’s policy.

Combined Savings

Talk with your agent about combining your coverage, especially if you pay for health and life insurance, too. Many insurance companies want to place all of your coverage under one umbrella so they receive all of your business. In order to encourage their customers to do this, they offer significant savings – sometimes as much as a few hundred dollars – if you let them insure everything. Plus, it’s just easier to bundle your insurance; you make one payment for all of your policies and boom, you’re done. If you pay for the entire year, as discussed above, you’ll pay a lot less.

Is your insurance keeping you in debt without you even realizing it? Go over your policies carefully and then take a long, hard look at your life. Figure out where you can save and reduce this necessary debt.

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