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Cheap Insurance - Ten Tips

VIEWS: 13 PAGES: 2

									by: Steve Gillman

Cheap insurance? Auto insurance, life insurance, health insurance, liability insurance - whatever
type of insurance you need, you can buy it for less. Try the following:

1. Raise you deductible. Why have a $100 deductible if a $1000 deductible won't break you? It
may hurt to pay the first thousand someday, but what if meanwhile you saved several thousand?
High deductibles mean lower rates. Of course, get quotes with various deductibles, to be sure
you're saving enough for the higher risk.

2. Lower your coverage. Insurance agents secretly admit that people usually get sued according
to policy limits. You'll be sued for more if your limit is a million than if it's a hundred thousand.
A judgement beyond the policy limits is a scary thought, but this can happen no matter what your
limits are. If you don't have many assets or much money in the bank, consider lowering your
coverage to save money. Get quotes first, of course, to see how much you'll save.

3. Lower the insurance company's risk. Using seatbelts, not smoking, and having alarm systems
can mean cheap insurance. Ask your agent about any discounts that are available.

4. Use an independent agent. Why limit yourself to one insurance company? Independents can
show you the cheapest policy regardless of which company it's from. Just check a rating service
to see if the issuing company is financially solid, especially when buying life insurance.

5. Drop your insurance. The insurance companies will hate me for this one, but consider
eliminating some coverages. You need liability coverage on your car, but collision coverage on a
$2000 car doesn't make sense. Invest the money elsewhere, and take the $2000 loss once or
twice in your life, or maybe never.

6. Buy stocks instead of insurance. If you and your wife both have good incomes, it probably
makes more sense to invest your money than to buy life insurance. If loved ones have enough
income or assets, life insurance premiums are usually wasted money.

7. Get rebates. Some states that allows "rebating". California law, for example, allows agents to
rebate part of their commission to you. If you live in a non-rebating stae, find a California
company online!

8. Get the legal minimums. If you have no assets to protect, ask for state-mandated minimums on
auto liability policies. Most companies give you their higher, more expensive "company
minimums" if you don't push the point.

9. Review your policies. It is common for parents to still pay for health insurance coverage on
adult children long after they are working and have their own coverage. See what other
unecessary coverages you may be paying for.

10. Get several quotes. For cheap insurance, compare quotes from several companies, and ask
about different policy options. One more thing: take notes.
This article was posted on August 16, 2005

								
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