Insurance tips to reduce your insurance costs

If you're like me, you don't enjoy buying insurance. We all tend to complain about the cost and what we get for our money. That being said, we need to get insurance to protect our family and assets. Here are some insurance buying tips to make the process a little easier.

Take an opposite angle on it. Start by finding out what the policy doesn't protect. We often act on what a policy covers, but are then amazed when we make a claim and are told it's not covered. You can read your policy, but it's also a good idea to get your insurance agent to read and explain everything to you. You can then assess whether you need to purchase special coverage for certain exclusions.

Every year when you renew your insurance policies, you should take some time to review your needs. Things change from year to year and your current insurance needs to reflect these changes. It would be nice if your agent raised the issue, but few do. So prepare to do your own analysis.

We all want affordable insurance but remember you usually get what you pay for so don't be fooled by exceptionally low prices. If you find what seems like a really cheap insurance policy, make sure you compare similar products. They are not all the same and can vary greatly.

However, if you buy insurance online, you can save anywhere from 15% to 45%, depending on the type of insurance and the company. There are several excellent insurance sites online so run your fingers and do lots of comparisons.

If you decide to switch insurance providers before your insurance is due for renewal, you will have to pay a penalty based on the remaining term of your existing policy. It's always best to switch providers when a policy comes up for renewal.

Also, you shouldn't change insurance too often, because you end up paying more. Building a long-term relationship with an insurance company can earn you significant discounts over time. So switch insurance if you have a good reason, but don't do it haphazardly.

When making claims, avoid making too many small claims. Every claim goes into your insurance file, regardless of the amount or even if it's not your fault. If you don't avoid this, your premium will increase at the time of renewal. If there are too many damage reports, the insurance company will assign you to a higher risk class. This results in you paying more at the time of renewal.

You can also do your part to reduce the risk of loss by making sure you have good deadbolts installed, proper locks on your windows, anti-theft devices on your vehicles, home security systems, and anything else that reduces the risk of a claim. Many insurance companies will even give you a discount if you do these things.

Do not exclude important details and do not mislead! For example, if you tell your agent that you are a non-smoker when you actually smoke, your claim will be denied if you submit one. In the end, the real loser is you, not the insurance company. It applies if you fail to disclose your real driving details, home insurance claims you have had in the past, or other relevant information requested by the insurance agent.

Once you get a policy you should read it carefully and make sure all coverage is correct. If anything is unclear or wrong, call your agent for clarification.

Insurance is one of those things that annoy you most of your life, but by following these insurance buying tips, you can make the process less of a hassle and more cost-effective.

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