Over the past few weeks, my spouse and I have been deeply involved in managing various insurance expenses. We’ve been renewing our health insurance, enrolling in life insurance, and updating our car insurance after trading in our car.
Paying for insurance often feels like a hassle until you actually need it. Although having health and car insurance is required by law, there are still ways to cut down on the costs.
Recently, we discovered some useful tips for saving money on essential insurance policies.
**HEALTH INSURANCE**
Only buy what you really need. Insurance premiums keep climbing, even if you stick with the same plan. It might be a good idea to reassess your current plan. For instance, we switched from a PPO to an HMO to save money. This change allowed me to save significantly on prenatal healthcare expenses last year with no out-of-pocket costs.
Now that our family is growing, we prefer the flexibility to choose any healthcare provider, so we’re switching back to a PPO. I’ve noticed that many people stick with their existing health policies out of habit, not realizing they could save money by making a switch. Check if your provider is part of an HMO network; this change could save you hundreds or even thousands of dollars each year.
When was the last time you reviewed your insurance policies? Making changes could save you a lot of money!
**LIFE INSURANCE**
With our first child on the way, we realized that life insurance is essential in case anything happens to either of us. While no one wants to use their life insurance, it’s reassuring to know it’s there if needed.
Using an insurance broker makes finding the best life insurance rates easier. Brokers can also advise whether term or whole life insurance is more suitable for your needs. Term life insurance is typically cheaper than whole life insurance, but it’s important not to think of life insurance as an investment. Your insurance broker should be your go-to for guidance.
**CAR INSURANCE**
After buying a secondhand car, we were pleasantly surprised to learn that our car insurance premiums would drop by over $200 every six months after selling our older car. This was unexpected because the secondhand car is newer, larger, and more valuable than our previous one.
We found out that our old car was classified as a sports car due to its two-door design, which raised the insurance costs. Buying a more reliable car resulted in savings.
Talk to your insurance provider about the best ways to save on car insurance. Many factors affect your rates, including where you live, but the type of car you drive also matters. If you’re getting a new vehicle, ask your insurance provider which cars offer the most savings on insurance.
What strategies do you use to save money on insurance? Do you review your policies and shop around at least once a year?