Today’s article is from Abbie Clark who has been working as a blogger and freelance writer for over three years. As a young wife and new mom, she is passionate about finding creative ways to save money and hopes to help others to do the same! When she isn’t writing, you can find Abbie baking something sweet, watching The Andy Griffith Show with her husband, or telling her 1-year-old not to eat paper. You can find out more about Abbie on her website here.
Every year as the holiday’s inch closer, I have found myself feeling more and more anxious due to just how expensive the season can be. From presents to decorations, and food, there are so many common holiday expenses that add up quickly and can leave you feeling a bit overwhelmed. Luckily, this year I decided to take control of the situation and get creative with my holiday budgeting. More specifically, I wanted to focus on how I could save money on insurance.
Here are 7 ways that I was able to save on insurance this holiday season while still being able to afford the gifts and activities that make this time of the year so special.
1. Reduce coverage on older vehicles
We have two cars that are each over ten years old. I decided that instead of paying for full coverage on these older cars, I would reduce the coverage to just liability insurance. This saved me more than 20% on my car insurance bill, which I was able to put toward other holiday expenses.
2. Shop around for better rates
I did more than I usually do this year when I was shopping around for better rates. I normally just compare car insurance quotes, but I decided to take it a step further and look at different companies and products beyond just auto insurance. I had no idea how much I could save by switching providers for my health and homeowners insurance! I highly recommend that everyone look around for the best rates because great deals can add up in a hurry.
3. Look for discounts
I was surprised to find out that I could be saving money on my insurance premiums without having to make a major switch or shop around. My providers had a variety of discounts I could cash in on, ranging from something as simple as being a homeowner to having good grades. I just had to verify I qualified by presenting some documents and I was immediately able to lower my insurance rate. I found it incredibly easy and would definitely recommend that others look for discounts with their current providers before looking elsewhere.
4. Bundle your policies
I was able to significantly reduce my monthly insurance premiums when I bundled all of my policies with the same provider. I added auto, home, and life insurance policies together to take advantage of their discounted rates. This made it easier for me to compare gift quotes and I am now confident I am receiving the best pricing available in the market today. Bundling policies is a great way to save money while ensuring I have enough coverage in place for my needs.
5. Pay your premiums annually
I always find that paying my insurance premiums annually makes a lot of financial sense. I get to avoid those pesky monthly payments and I usually qualify for a discount if I pay for all of my insurance policies at the same time. This allows me to save my hard-earned money and I also feel much more secure knowing I have an entire year’s worth of coverage and I don’t have to worry about having to make regular payments as I go through the year. It really pays off in the long run!
6. Raise your deductible
I recently decided to raise my deductible from $500 to $1000 as I knew I could comfortably afford a higher amount if I ever needed to make an insurance claim. I was pleasantly surprised that I ended up saving a lot of money on my premiums, making it highly worthwhile. Raising your deductible should not be undertaken lightly however and it is essential to determine whether you can handle the associated risks before making any decisions. This change has proven to be one of the simplest ways I have saved on insurance this year.
7. Monitor your credit score
I made sure that I was monitoring my credit score this holiday season. Many insurance companies use your credit score to determine the rates they offer you, so it is important to keep an eye on it. I was able to make a few minor adjustments to my credit score by paying off debts and disputing errors, which ended up helping me save a bit on my insurance premiums. Monitoring your credit can be an easy way to save money and I would highly recommend it.
In conclusion, there are a number of ways to save money on insurance this holiday season. Shopping around and looking for discounts can be an easy way to start saving while bundling policies and raising deductibles can also be beneficial. Paying your premiums annually and monitoring both your credit score and insurance policy are also great ways to save money and ensure you have the right coverage for your needs. Taking a proactive approach to saving on insurance can pay off in the long run and help you keep more of your hard-earned money in your pocket.