During these recent weeks, my spouse and I have been heavily immersed in dealing with numerous insurance expenses. We’ve been dealing with health insurance renewal, enrollment in life insurance and updating our car insurance due to a car trade.
To me, paying for insurance is really one of those things that feels like such a burden until you actually need it. And although having health and car insurance is mandated by law, there are still methods to reduce spending on these insurances.
In recent weeks, we’ve picked up several handy tips on how to save cash when it comes to essential insurance policies.
HEALTH INSURANCE
Just purchase what is truly necessary. In recent times, the price of premiums continues rising even if you stick with the same insurance plan. Perhaps it’s time to reassess your current plan. For example, we changed from a PPO to an HMO due to the potential cost savings. By doing so, I was able to save a significant amount on prenatal healthcare expenses this past year with no out-of-pocket costs.
With our growing family, we now prefer the flexibility to choose any healthcare provider, so we’re switching back to a PPO. From my observation, many employees tend to stick to their existing health policies year after year merely out of habit, not realizing they could be getting a better deal by making a switch. It’s worth checking if your healthcare provider is part of the HMO network. This change could end up saving you hundreds or even thousands of dollars in healthcare costs annually.
When was the last time you reviewed your insurance policies? Making a switch could save you heaps!
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LIFE INSURANCE
Given that we are awaiting our first child, it’s become clear that life insurance is necessary in case anything happens to either of us. While nobody wishes to have to use life insurance, it’s comforting to know it’s there if needed.
With the assistance of an insurance broker, finding the best rates for life insurance becomes much easier. Brokers also provide advice on whether term or whole life insurance is more suitable for your distinct needs. Although term life insurance is less expensive than whole life insurance, it’s crucial to remember not to consider life insurance as an investment. However, an insurance broker should be your primary source for guidance on this matter.
CAR INSURANCE
After purchasing a secondhand car, we were pleasantly surprised to find out that we will be saving over $200 semi-annually on our car insurance premiums upon selling our older car. This was surprising to me since the secondhand car is newer, larger and more valuable than our previous one.
We discovered that our previous car was deemed a sports car due to its two-door design, which apparently increased the insurance costs. It turns out that buying a more dependable car resulted in monetary savings.
Engage with your insurance provider on the best methods to save on motor insurance. Numerous factors come into play when calculating your rates, including your area of residence, but your choice of car also plays a significant role. If you plan on getting a new vehicle, inquire with your insurance provider about which cars can provide the most insurance savings.
What strategies do you employ to save money on insurance? Do you regularly assess your policies and shop around at least once a year?
