Certain expenses in life are absolutely non-negotiable. Even after you’ve looked through all your discretionary spending, how do you go further and make savings on essential spending as well?
One of the most tempting expenses to cut back on can be those insurance payments, but if the worst does happen, you need to know that you’ll be covered. It’s never a good idea to skip insurance, but there are some steps you can take to make sure you’re getting the best policy (hint: its the one that best fits your unique needs) and also reducing costs.
Insurance providers are wising up to the fact that it’s easier to keep existing customers (and reward them!) that fish for new ones all the time. And you can take advantage of that by striking a collective bargain. Find suppliers that offer auto, home, and medical insurance and see if they will offer a discount for customers that hold multiple policies.
Make sure you’re taking advantage of the latest technologies too – many car insurance providers will now allow you to sign up to have a ‘black box’ installed in your vehicle. This monitors your driving habits, and a policy is then calculated based on that. This can be especially beneficial for younger drivers who often get hit with expensive premiums based on their age.
Concepts from one part of the industry can now apply in other areas too. You may have heard of a no claims discount for autos – but did you know many home insurers are now offering one too? It’s worth checking when you renew whether your current provider will offer this.
And when renewals time does roll around, make sure you’re getting the best deal by reading up on providers at sites like insurance.me – doing a little research can help you identify new ways to make savings.
If you can, it could also be a bright idea to increase the voluntary excess amount on your policies. This will have a significant impact on the monthly price offered, although do make sure that it’s not unaffordable should the worst come to the worst.
Also, consider being more specific about your job title. You wouldn’t think it would make all that much difference, but even small variations in listed occupation can have an impact on the amount you pay. Visit this handy job title search website to see a list of related job titles and the premium each will pay. Remember though; you can’t stretch the truth too much as listing a job too far from what you actually do risks invalidating your policy entirely.
With both home and car insurance, if you can afford to pay the lump sum rather than monthly payments, the savings can be substantial. Interest typically sits at around 24%, making this form of borrowing more expensive than the APR on most credit cards – not great news!
Finally, if your partner has a good, safe driving record, consider adding them onto your car insurance as a named driver. This can actually reduce the total amount – provided the person has not got any previous claims.