Insurance payments can be some of the most significant household expenses after food. Some are necessary, while others can be a choice. First, you need to determine if you really need it, and for sure, you’ll need some. Next, you want to find ways where you can save. Here are a few tips for you.
Home and Contents Insurance
If you own your property, you need homeowners insurance. This covers you for disasters, natural, like cyclones, or human-made, like some maniac crashing his car into your fence. What you pay in premiums is a lot less than what you’d have to pay in repairs. If you’re a renter, then it isn’t your responsibility to cover the property, you may, however, need contents insurance.
Contents insurance is selective. This covers the things inside your house. If your home is filled with priceless art, or designer bags and jewelry, you’ll want these items to be protected from damage or theft. If, on the other hand, your most valuable asset is your mobile phone, then most likely, you don’t need this form of insurance.
The big question you need to ask yourself is – do you need life insurance? If you’re a single person, with no dependents, except maybe a dog or a goldfish, it’s probable that you don’t need life insurance. Remember, this benefits people after you’re gone. If that’s not necessary for you, then you’re saving yourself thousands by not purchasing it.
However, if you’re the main bread-winner of a large family, you absolutely must be covered for their sake. The first thing to check is if your employer covers you. Some corporations have life insurance coverage for their executives, that’s a win for you right there.
If not, you need to work out how much coverage you need. Policygenius suggests 10-15 times your income is the best calculation. After that, you need to decide whether you want term insurance or whole life. Term insurance is for a fixed period of time and then expires, while whole life lasts for a long as the premiums get paid. The latter is considerably more expensive than the former, so choose wisely.
Several factors increase the amount of car insurance premiums. If the driver is under 25, expect the price to be extremely high. The age of the car, too, will boost the amount as will your driving history. If you have a clean driving record, expect a much lower amount to pay. If you’ve been in a few accidents, be prepared to shell out some big dollars.
The experts at BrokerLink car insurance indicate that where you live can also affect your premium. More densely populated areas can mean higher rates. If you live right on the border, it’s worth seeing if the other county has lower prices, you may be able to insure your car based on that address.
The gang at World Nomads will tell you straight up – if you can’t afford travel insurance, you can’t afford to travel. This couldn’t be truer.
If you’re injured while traveling overseas, you could be up for some bankrupting medical and hospital charges. Taking out basic travel insurance to cover you for accidents and emergencies will give you peace of mind if this situation occurs.
Be careful about buying fully comprehensive travel insurance, though. If you aren’t riding bicycles or scuba diving, then don’t pay an extra premium that isn’t necessary. Most policies these days allow you to pick and choose what you want to cover, reducing the cost considerably.
Other Ways to Save
There are two more ways you can save on insurance. If you can afford it, pay annually rather than monthly or fortnightly. You can benefit from up to 10% discount by doing this. That’s quite a saving.
The other way is called bundling. If you buy 2 or more policies from the same provider, you’ll almost certainly get a discount. These days, most insurance companies can offer you coverage for everything, so it pays to bundle.