Three Ways You can Save Money Annually

There are at least three good ways that you can save money on your health insurance, homeowner’s and renter’s insurance and car insurance. In these tough economic times, consumers look for ways to shed expenses from their budget without cutting out important necessities. These three insurances are important for every family. Cutting them out could cost families thousands upon thousands of dollars.  Homeowner’s insurance and car insurance are mandatory so you must have them if you own a home or a vehicle in operation.  These insurances are usually a family’s monthly greatest expense other than rent or mortgage.  So how can a family save money on these insurances that are necessary?  There are a few ways to do this; this article will outline three very useful methods.

Combine Policies

Save Money on Your Health Insurance, Home and Renter’s insurance and Car Insurance by using the same company for all of them.  When you combine all of your insurances with one company, often you will be eligible for what is called a multiline discount, which could save you anywhere from 10 to 25 percent on your insurance payments every month.  You should check into companies that offer these multiline discounts because it could save you thousands of dollars over a period. Companies such as Statefarm and Metlife have such options, but there are many other companies offering this type of savings. Before you look anywhere else, first start with your own company since you already have a relationship with them.

Raise Your Deductibles

All insurances have a deductible, which is the amount you, as the insured, agrees to pay when making an insurance claim before the insurance companies makes its payments. Raise the deductible to the highest amount you can afford to pay out of pocket if you should get sick, get into a car accident, or experience problems with your home.  When you raise your deductible, your monthly payments decrease.  This is a great way to lower your monthly payments, but make sure that you have enough saved to take care of your deductible if something should happen. Otherwise, raising your deductible is pointless.

Make One of Your Cars a “Low Mileage Car”

 A low mileage car is a car that uses less than 15,000 miles annually. By designating one of your cars as a low mileage car, you can save about 10 to 15 percent on your car insurance annually. There is currently a bill in the United States Senate, Bill 5730, that would force insurance companies to give mandatory discounts to those motorists who use less than 5,000 miles annually. According to the Wall Street Journal, State Farm Mutual Insurance Company, Farmers Insurance Company and Travelers Insurance Company offer an annual discount of 10 to 18 percent to low mileage motorists.



The Wall Street Journal: Insurers Offer Low-Mileage Discounts

Action Plan: New Rules For New Times; Suze Orman; 2009


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