Trim Your Premiums With Little Effort

Insurance payments can consume a large portion of your income if you don't proactively manage your costs. Read on for eight ways you can save on coverage across the board.

  • Shop for a new insurer. The industry is highly competitive, and there is a good chance another carrier could give you a better deal on your plan. You could save 25%-30% by switching companies.
  • Look into available discounts. Almost all types of policies have several discounts available, most of which consumers don't know about. You could qualify for discounts for holding multiple policies, being married, getting good grades, and more.
  • Pay all of your bills on time. Auto and home insurers will review a modified version of your credit report in order to help determine your costs. If you have a good credit history, you will save money.
  • Up your deductibles. Try raising your health, auto, and home insurance deductibles to save on your expenses. Of course, you will incur more out-of-pocket costs if you have to file a claim, but premiums are a sure bet while a loss may not occur at all.
  • Don't put a teen driver on your auto policy right away. The costs of an Atlanta Georgia insurance policy on a vehicle can rise by up to 100% if you add your 15- or 16-year-old child on your plan. If you can delay getting your child a driver's license for one or two years, you will save a bundle on your premiums.
  • Get rid of collision coverage. Collision and comprehensive coverage are probably unnecessary on your policy if your car is older. The rule of thumb is that you should drop collision if your vehicle is worth less than ten times your yearly comprehensive and collision premiums.
  • Switch to paid-up life insurance. You can eliminate your costs completely by converting your cash value policy to a paid-up one. To convert the plan, you keep the cash value in exchange for a reduced death benefit and no more premiums. This option is usually cheaper than cashing out the agreement, which always eliminates your death benefit.
  • Reduce the death benefit on your plan. If it's been a while since you purchased your plan, your coverage needs have probably lessened over the years. Consider reducing the death benefit on your policy to lower your costs.