Owning a house or a car is a big responsibility. You have to keep them in good repair. You have to make sure that the utilities stay on. You have to protect them with insurance.
Sometimes, insurance can seem to be a big hassle; so many forms to fill out, so many renewal deadlines, dates to remember, and at times, so much expense involved. It certainly would help if you knew how to keep track of all of this as well as how to avoid overpaying.
Here are some ways you can protect your wallet as well as your property in 2021.
Bundle your insurance
Like many things, insurance is less expensive when you get it all from the same place. If you have a pricey home insurance policy and lower-cost auto insurance, it might make sense for you to bundle both under a multi-policy option since you are likely to save anywhere between 5 and 25 percent per annum by putting the two together.
Even better, you don’t have to keep track of two policies, from two separate companies and talk to two agents. Having a multi-policy option simplifies things because you’re only dealing with one company. These days, insurance companies allow you the convenient option of managing your policies with apps, that will provide convenient reminders of payments that have to be made.
Even if you’re happy with your insurance coverage, you should look around ever so often to see if you are getting the best deal. You may not have looked at the fine print on your policy, but most insurance companies raise rates in incrementally small amounts annually. If you’ve had your policy a long time, you may not have even noticed how the cost kept creeping up every year.
If you want to reduce your insurance payments, it might be a good idea to see what’s available. You can likely get better rates elsewhere. Before switching, you even have the option of taking the lower rate to your insurance company to see if they will match it. Many will try to match to keep your business. If you’re with a company that wants to continue to overcharge you though, it might be time to move on.
Do your research
The Internet has democratized information unlike anything else in history. You can find out anything you want to know. Home and Auto insurance rates are no different. There are several sites online like MyChoice.ca that can help you compare rates across companies and according to your location. You can immediately see if you’re paying too much for insurance and if there is a company offering a better deal in your location.
Maintain good credit
Given how many things your credit score is connected to, it makes sense to work to have the best one possible. Research has shown that people with lower credit also make fewer claims on their home and auto insurance. Taking this research to heart, insurance companies lower premiums for people who have good credit.
To improve your credit score, make sure you pay your bills on time, do not take out more credit than you need, and get rid of any credit card debt you currently have.
Re-evaluate whether you need as much insurance as you do
If you’ve had your car for a few years, it may be time to examine whether you are paying too much in insurance. The value of a car depreciates the minute you drive it off of the lot. Among other things, car insurance rates are pegged to the age and value of your car. It may be possible to get a lower rate from your company because your car has depreciated.
Similarly, you may have insured items in your home that were very expensive and hard to replace. As the years pass, these items are likely to have depreciated. You may not need to insure them anymore and can reduce the amount you pay in insurance.
Reduce risk in your home and your car
Insurance companies love when customers make the items they insure safer. Putting in a smoke detector, installing storm windows and a more durable roof are examples of ways you can lower premiums on your homeowner’s insurance. Meanwhile, becoming a safer driver can bring your car premium rates down.
Having expensive, difficult to keep track of insurance is not an inevitability. There are ways you can manage your insurance payments and properly administer them as well. Try some of these suggestions today.