Changing insurance companies can save you money and time. While it may take some time to compare different insurance plans, the savings can be significant immediately or over time. Even though these changes may seem small, the positive impact can be felt almost immediately, and this positive change in your budget will create breathing room. You can also switch insurance companies to get a better premium. Nearly half of shoppers do just that. In addition, you can also compare policies to find the best possible coverage for the best price.
Many insurance companies offer discounts for certain types of drivers and policies. For instance, if you have a clean driving record and do not commit any traffic offenses, you may be eligible for a safe driver discount. Drivers who complete a defensive driving course may also be eligible for additional savings. These savings can be substantial, but they may not be apparent at first. To maximize these savings, try to combine your home insurance and auto insurance policies.
Purchasing health insurance can save you a significant amount of money, and if you shop around for the best deal, you can also find financial assistance and discounts. Today, health data is easily available, and many insurers are using fitness trackers and other new technologies to reduce risk. These new tools help them calculate how much each person is expected to pay for services each year. To avoid wasting money on the wrong plan, look for financial aid and discounts available through your employer.
Getting insurance through an employer
Health insurance through your employer is an excellent choice. Your employer will usually cover the cost of your premium and part of your family's premium, and they will likely also contribute money to the plan, too. Depending on where you live, some employers offer only a single plan while others offer many plans. The cost of these plans will vary, too. In addition to paying the premium each month, you'll also have to pay the deductible.
Increasing your deductible
If you can afford to pay more than the minimum amount for insurance, consider raising your deductible. An increase in your deductible will lower your insurance premium by about 10% to 40%. You can use the extra savings to put away a rainy day fund or set money aside for emergency situations. However, you should consider the extra risk of raising your deductible. For example, if you earn less than $30,000 per year, raising your deductible to $2,400 can save you more than 40% on insurance premiums.
Choosing a plan with a higher deductible
High deductibles are better for your wallet, but if you are worried that you will use your insurance often, a low deductible might be more affordable for you. However, a higher deductible will likely mean more expensive monthly premiums. You might also lose your health savings account. In order to decide which deductible is the best for you, crunch some numbers.