20 Ways to Save Money on Insurance
There are many ways to save on your insurance costs so here are a few that we think you should be aware of:
1. Shop Around Not all brokers deal with the same insurance companies so speak with several brokers and compare rates. Also, inquire at your bank as many now own their own insurance company and may offer discounts for their banking clients.
2. Bundle Most insurance companies offer discounts of 10-15% if you carry multiple products such as home, car and life insurance.
3. Increase Deductible Increasing your car or home insurance deductible you can lower your monthly premiums.
4. Credit Card Balance Protector Insurance These insurances are typically very costly compared to the benefit. If you pay your credit card in full each month you avoid the need for any insurance.
5. Mortgage Life & Disability Insurance Rather than purchasing these insurances from your bank, check with your insurance broker as they can often provide similar coverage or better at a lower cost.
6. Students/Seniors These groups often qualify for discounted insurance rates.
7. Annual Payments vs. Monthly Payments Put aside the funds each month and pay your insurance in full when it comes due. This will save you money as there is often a premium added for the convenience of monthly payments.
8. Discounts for Groups/Members Being a member of Costco, CAA, a union, or a professional association can often provide you with discounted or group insurance rates.
9. Decrease Coverage Your insurance needs will likely change over time so review all of your insurances to make sure that you have adequate coverage and eliminate any overlapping or needless coverage.
10. Driver’s Training New drivers can decrease their insurance premiums by taking a course through a licensed driver’s training provider.
11. Type of Vehicle Some vehicles are more prone to theft or have a history of risky drivers and may cost more to ensure.
12. Home Renovations & Maintenance Replacing old wiring and electrical panels and doing regular maintenance can reduce your premiums as older homes are typically more expensive to insure than newer homes.
13. Fire Station/Fire Hydrant Living within close proximity to a fire station or fire hydrant can reduce your insurance premiums. Something to keep in mind when purchasing a home.
14. Maintain Good Credit Score Some insurance companies now use your credit score when calculating premiums to determine the risk. Maintaining a good credit score can help you get lower rates.
15. Marital Status Your marital status will affect your insurance rates. Married people are viewed as more stable and therefore less likely to engage in risky activities.
16. Quit Smoking Non-smokers have much lower premiums for life, disability, and critical illness insurances. If you were a smoker when you got your insurance you will have to prove that you have been off cigarettes for at least 1 year to have your premiums lowered.
17. Stop Drinking Alcohol Non or moderate drinkers have much lower premiums for life, disability, and critical illness insurances.
18. Type of Employment Those who work in dangerous jobs often pay higher premiums and in some cases do not qualify for life or medical insurance.
19. Travel Insurance You may have travel insurance benefits as part of your employer’s health plan or through your credit card so check prior to purchasing travel insurance.
20. Avoid Extended Warranties/Insurance on Purchases Many credit card come with free purchase protection warranties so you can eliminate the need for expense insurances sold by retailers.
For a free consultation over the phone or in person in Saint John, Moncton, Fredericton, Charlottetown, or Dartmouth please contact us. Powell Associates Ltd. is a Licensed Insolvency Trustee (LIT) focused on providing debt settlement, proposal and bankruptcy solutions for individuals and businesses.