Wednesday, March 3, 2021

How to Save Money by Choosing the Right Insurance.

January 26, 2021 by  
Filed under Business, Money, Opinion, Tech/Internet, Weekly Columns

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( Insurance comes in handy for many aspects of life: auto insurance to cover your car, home insurance for your house, health insurance for yourself. There seems to be hardly an area that you can’t choose to cover with insurance.

Although it is extremely important to make sure you have coverage for these many areas of life, it is also important to choose the right insurance for your needs.

There are countless businesses that claim to be the best auto insurance companies, but how do you know if they are really best for you?

If you don’t look into your policy and simply choose one because they claim to be the best, you could wind up paying far more than you need to. It’s because either you are paying for options that you don’t even qualify for, or you have too little coverage and wind up paying large sums out of pocket.

By following these tips, you can be sure your coverage fits your needs and budget.

home insurance

Health Insurance

Health insurance is an important asset to have in life. You never know what could happen to you or your family. Without health insurance, you may be stuck paying high medical bills completely without any assistance.

Being that medical bills are the number one cause of bankruptcy, it is important you have the right coverage to fit your needs.

Your Situation Affects the Policy You Need

There are a few different options when it comes to coverage. Typically there are plans with higher deductibles and plans with lower deductibles.

The difference between the two is how much money you will pay monthly and how much you will pay out of pocket at medical visits.

You should evaluate your situation and determine which is better for your needs. For example, someone who is healthy and rarely needs to go to the doctor may opt for a higher deductible plan due to the minimal chance they will use it.

On the other hand, a lower deductible is a good option for someone whose savings may be low and is unable to afford a large expense if something were to happen. You may pay more monthly, but your medical bills will be lower.

Taking a look at you and your possible dependents, your financial situation, and the frequency of your medical needs can help you determine which option better suits you and therefore will save you money.

Read the Fine Print

If you are someone who wears glasses, makes frequent therapy visits, or perhaps needs dental work done, it’s important to read the fine print on your plan before choosing.

Some plans may have a yearly limit on office visits, and some may not provide dental or vision coverage.

If you have these needs and your plan doesn’t cover them, you may be stuck paying the costs yourself.

On the other hand, if you are someone with good vision, for example, you may look for a plan without the coverage in order to save yourself the cost.

Determine Your Possible Dependents

If you are planning to expand your family soon, it’s important to be sure you have a policy that gives you the coverage you need.

Not all insurance plans are equal in their coverage, and having a child is an expensive event. Look into your policy and see what your options are for childbirth. You may find you aren’t as covered as you thought and could wind up paying a large sum of money out of pocket.

Auto Insurance

Having auto insurance is necessary if you have a car you wish to drive. But not all auto insurance policies are the same.

If you don’t look deep enough into your coverage, you could wind up paying for options you don’t need. Or you could have too little coverage and find yourself paying large amounts with no help if something happens to your vehicle.

Consider Your Car

The car you drive can be a big deciding factor in what type of insurance you choose. If you drive an older vehicle, you may not want to splurge on extra insurance coverage you’re paying for month after month. 

The reason is that your monthly costs may add up to more than your vehicle is worth. That means if you were to total it, you would technically lose money due to high monthly premiums.

On the other hand, if you have more valuable assets, paying for more coverage may be worth it to cover the cost of your car. Even if you pay a higher monthly amount, the coverage will be extensive enough to make those costs worth it.

Think About Your Location

Some areas are at higher risk for natural disasters than others. If you are a resident of an area with frequent harsh weather, choosing a policy that is comprehensive can help protect you from large expenses if something were to happen to your vehicle due to weather.

However, if you park in a garage or live in an area that isn’t commonly a victim of rough weather, this may be an option to skip to save some money monthly.

Your location also affects the possibility of crime. Comprehensive coverage can cover you if your vehicle is damaged through an act of theft as well. If you live in an area with a higher risk of crime, it may be worth the costs monthly to protect yourself from larger out-of-pocket costs if your car is vandalized. 

Home Insurance

You likely spend the majority of your time at home. Therefore, it’s important to keep it safe with the right kind of insurance coverage.

But there are factors to consider when purchasing home insurance in order to prevent yourself from the possibility of large costs to you if something were to happen to your house.

Where Your Home is Located

The average home insurance policy will cover a wide variety of instances that may occur. However, instances such as earthquakes and floods are typically excluded from coverage. 

If you live in a location where these types of disasters may occur, it is a smart idea to add them to your coverage plan to protect yourself from large expenses.

Research Your Cost to Rebuild 

By finding the cost to rebuild your home if something were to happen, you can save yourself large amounts of money. Rather than looking at how much you owe or what you originally purchased the house for, look into the actual cost it would take to rebuild your home or just some parts of it if needed.

This calculation can help you avoid overpaying for coverage costs that are much higher than you truly need.

Find a Policy That Allows You to Save

There are ways you can cut your home insurance costs. By doing so, your monthly payments can decrease and you can spend more of your own money on things you enjoy.

Search for a home insurance policy that allows you to cut costs through options such as:

  • Senior discounts
  • Non-smoker discounts
  • Homeowners’ association discounts
  • Gated community discounts
  • Home security system discounts
  • Fire alarm discounts
  • Bundling discounts

There are many options available. Simply do your research and see which companies offer discounts you may qualify for.

The Right Insurance: Worth the Research

There are so many options when it comes to insurance coverage. It may seem like a time-consuming process to dive so deeply into your policy choices.

Choosing the right kind of insurance for your needs, be it home, auto, or health, can save you large amounts of money in the long run. This makes it worth the time it takes to decide which plan is right for you.

Alexandra Arcand writes and researches for the insurance comparison site,, and enjoys helping people save money and find the best insurance to fit their needs.

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