Nobody likes to overpay for insurance. So before talking to the insurance companies it is a good to know in advance what types of coverage you need, otherwise you might end up paying much more than required. In order to avoid falling prey to such companies you should follow these three easy steps to cut your insurance bill.
Get membership in professional organizations and associations
It is commonly observed that memberships can be very beneficial, as you can get discounts on various restaurants, airfare, and other services. There are also many employers who offer memberships to their employees and help reduce the amount of the insurance bill. Contact your insurance firm and talk to your employer. It is beneficial to both the employer and the employees to participate in such money-saving programs.
Bundle insurance needs
This method has got many advantages. Besides the usual reduction in auto insurance costs, the overall insurance bill is lowered significantly. Having several insurance policies with different companies is not recommended at all, as combining all of these services with one company will lower the rate appreciably. As you will become a major client, the company will reward you with one low rate.
The best possible way to bundle your services is when you speak to an authorized person from the company who can sanction the required changes to your policy. See what rates that company is prepared to offer to you and then visit other insurance companies and compare these rates with what they are offering. Tell other insurance providers what rates your company is providing and you will be surprised to see that these companies will go all the way in order to compete with your current insurance company. This way you can effortlessly reduce insurance rates.
Assume more risk (or go for a higher deductible)
The simple strategy of opting for a higher deductible could lower your insurance rates by double digit percentages. The savings in premium amounts may offset the higher deductible option over a course of time and if you manage your insurance program carefully, it could actually save you more money.
Leave a Reply