How to SAVE on Insurance

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Save money on insurance when you follow these 5 rules!

1: Never buy more insurance than you need

If you bought enough insurance to never lose any money, you are probably paying so much you won’t have any money to lose.

To save on insurance premiums, take more risk on yourself. Make the excess payment as high as you can afford. Discuss raising the excess with your insurer to determine the savings.

Only insure for catastrophe not inconvenience.

2: The insurance sales person is not your friend

Whatever you buy, the more you spend, the more the salesperson or company makes. So it is with insurance too. The question is: should you base your insurance decisions on the advice of a person who directly benefits from your purchase? And ask him how much insurance to buy?

This is the same on a website where an insurance “calculator” determines how much insurance you should buy. What the company says you “need”, is probably more than you need.

3: Understand your insurance policy

Create a spreadsheet, in any formula you choose, of your policies noting the following info:

What is covered, the excess/deductable amount, due date and contact number and possibly a contact name. This information will paint the big picture and help you to shop for better. Don’t hesitate to get all the answers you need by phoning the toll-free number on your policy.

Drop comprehensive cover on your car policy if the value of your car is low.You can save quite a bit by driving a cheap car and carrying more of the risk.

4: Never stop shopping for better insurance

Since you have better things to do in life than shop for insurance and your Insurance Company knows that, they’ll increase your rates, hoping you’ll accept rather than shopping for a better agreement.

If you don’t have dependants, you probably don’t need life insurance.

5: Be wary of gimmick insurance

Credit life is insurance tied to a specific debt, such as a car loan or mortgage. It will be paid up when you die but Term life insurance is normally a cheaper and better way to do it.

A comprehensive health policy is better than specific disease cover. You might do better to buy a term life policy and invest separately, than whole life with a savings account included.

The policies with higher commissions for the sales person, is what he will push to sell.

Ref.: http://www.moneytalksnews.com/