Some Cheap Insurance Secrets
By Steve Gillman
Not only can you spend less on all types of insurance, but
you can get more of the coverage you need for less. Here are
some insider secrets to help you out.
Cheap Auto Insurance
Of course you should get several quotes. You also probably
know that having as high a deductible as you can afford will
save you money. Here are some money-saving tips you might not
- Demand the legal minimum for liability coverage if you have
few or no assets. Many companies try to sell you their "company-recommended
minimums" on liability, and even pass them off as the legal
minimums. Get the legal minimums. If you have no assets, you
are not a target for a lawsuit.
- Review your policies. Have your policy reviewed and get
new quotes every year or so. If the ticket you have is now past
the three year mark (or whatever the company thinks is important)
they will drop the rate, but not automatically, so ask.
- Remove kids from your policy. If the kids are at a college
that's more than 100 miles away, you can have them taken off
the insurance policy and save a lot of money. You can't let them
drive the car when they come home to visit though.
Cheap Life Insurance
- Buy multiple policies. Instead of buying one large policy,
you can save money by buying two, and staggering the terms. Have
one run until the kids are out of the house, for example, and
the other until your retirement fund kicks in.
- Check out the company. Visit www.naic.org/cis. This is the
National Association of Insurance Commissioners site. It has
links to check out companies, including their financial condition,
and the complaints filed against them.
- Get rebates. Some states allow agents to rebate a portion
of their commission to you. Check online or by phone. You don't
have to be from the state to buy insurance there.
- Health insurance: Find a group to join. If you don't have
health insurance through your employer, join a group that enables
you to get a better policy rate. A fraternal organization or
the chamber of commerce sometimes have arranged for group policies.
- Home owners insurance: Consider higher deductibles. Insurance
is for disasters, not small stuff. Plan to pay the first $1000
someday when something happens. In the meantime you'll save money
every year on your policy.
- Credit life insurance: Just say no. It pays the balance
of your auto, home or other loan if you die. If you feel you
need it, regular life insurance for the same amount is much cheaper.
No matter what type of insurance you are buying, be sure to
get several quotes. Ask about every part of the policy. Don't
pay for things you don't need. Ask if there are any special discounts
you might be eligible for. Asking a lot of questions and really
understanding the policy is the key to getting cheaper insurance.