Over the past few weeks, my spouse and I have been busy dealing with a variety of insurance expenses. We’ve tackled health insurance renewal, signed up for life insurance, and updated our car insurance after trading in our car.
Paying for insurance always feels like a hassle until you actually need it. Even though health and car insurance are required by law, there are ways to cut down on costs. Lately, we’ve learned some useful tips on saving money with essential insurance policies.
HEALTH INSURANCE
Only buy what you really need. Premiums keep going up, even if you stay with the same plan. It might be time to re-evaluate your current plan. For instance, we switched from a PPO to an HMO to save money. This change helped me save a lot on prenatal healthcare expenses last year, without any out-of-pocket costs.
With our family expanding, we’re now opting for a PPO again because we want the freedom to choose any healthcare provider. Many people stick with the same health policies year after year out of habit, unaware that switching could save them money. Check if your healthcare provider participates in an HMO network; this change could save you a lot annually.
When was the last time you reviewed your insurance policies? Making a switch could save you a lot!
LIFE INSURANCE
As we await the arrival of our first child, we realized the importance of life insurance in case something happens to either of us. Nobody wants to use life insurance, but it’s reassuring to have it just in case.
Using an insurance broker makes finding the best rates for life insurance much simpler. Brokers can also offer advice on whether term or whole life insurance is right for you. Remember, term life insurance is usually cheaper than whole life insurance, but don’t think of life insurance as an investment. Let your insurance broker guide you on this.
CAR INSURANCE
After buying a secondhand car, we were pleased to discover that selling our old car would save us over $200 every six months on car insurance premiums. This was surprising because the secondhand car is newer, bigger, and more valuable than our old one.
We learned that our previous car was classified as a sports car due to its two-door design, which increased insurance costs. Getting a more reliable car actually saved us money.
Talk to your insurance provider about how you can save on car insurance. Many factors, like where you live and the type of car you drive, affect your rates. If you’re planning to get a new vehicle, ask your insurance provider which cars offer the best insurance savings.
What tips do you use to save money on insurance? Do you review your policies and shop around at least once a year?