Gulf Winds Federal Credit Union Blog

3 Ways to Reduce Insurance Costs

Insurance is a necessity for just about everyone.

From the legally-required car insurance to the highly-recommended home and life insurance, it’s great to have a safety net when life’s difficulties arise. The problem is, the costs of these insurance plans can make them a real hassle to maintain. Here are few tips for lessening the cost burden of insurance while still keeping yourself protected.

 

1. Shop around different providers

Insurance is a service like any other, and savvy shoppers can bargain hunt for the best policy deals. There are plenty of websites online designed to help you with this process. Be wary of switching too often, though, because some providers reward loyalty over time. And make sure you don’t cancel your current policy before signing a new one, as you’ll be liable for any accidents that take place in the interim.

 

2. Demonstrate safety

The actions you take may affect how much you pay for insurance. The idea is that the safer the insurance company believes you are, the more they’ll reward you:

Auto insurance costs can be improved by driving defensively and avoiding collisions
Home insurance costs may improve with the installation of burglar alarms or smoke detectors—anything that will reduce risk for the insurance provider
Life insurance costs may be reduced by improving your lifestyle habits, including stopping smoking and reaching a healthy weight

 

3. Manage your credit

Your credit score may have an impact on what kind of premiums you’re being charged by insurance providers. Although repairing credit isn’t easy, if you pay down your debts and make all future bill payments on time, you stand a good chance of increasing your credit score and lowering the amount of money you’ll be charged for future insurance policies.

 

Shop Smart for Insurance

Remember, although insurance providers want your business, some will be less flexible than others. Do your research and shop around for the best deals. Insurance may be necessary to protect yourself, but it shouldn’t bankrupt you in the process.

 

 

 

 

 

 

Photo Credit: bigstockphoto.com user Bychykhin Olexandr

 

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