Save money through Insurance

Insurance

The best tip for insurance in general is to be careful. The fewer claims you make, the less you will have to pay out.

Shop around. Insurance is ultra-competitive, so find the best deal possible then get your insurance company to either equal or beat it. If they don’t want to, tell them you’re leaving and see how quick they change their mind.

You’ll find the cheapest insurance deals online because there are fewer overheads.

Avoid driving over the speed limit because if you get caught you’ll be served some penalty points, which are then put on your license. Once that happens, you can bet your bottom dollar that your premiums will go up. So slow down.

If you have an old car that has lost it’s value, you can save substantially by assuming more risk. This means that you’ll not be covered for the small dings and scratches (that probably adorn the bodywork anyway) but you will be covered for larger accidents. Think about it, why pay more for a car that has already lost it’s value?

Taking on a higher deductible (USA) / excess (UK) is another way to reduce your monthly payments. So let’s say you setup a new car insurance policy with deductible fee of $500. If you had an accident that caused $1,000 of damage, you would have to pay up the $500 and the insurance company would pay the balance.

Another way to save on car insurance is to garage your car overnight, which insurers typically view as one less risk.

If you don’t drive a lot, you might be interested in some of the new pay-as-you-drive (PAYD) plans. Instead of paying a flat rate monthly charge, you only pay to have your car insured while driving and therefore saving you a lot of money. However, there are privacy concerns as some PAYD plans rely on satellite tracking. But if you are apathetic to being tracked and just want to save money it could be well worth looking into.

Taking out personal travel insurance per journey can be very expensive and inefficient. If you are a frequent traveler then it may actually cost you less to take out a monthly year-round travel insurance policy to cover you anywhere in the world. If you travel only a few times per year then comparing prices online it the way to go.

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