How to Cut on Insurance Costs

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For those who are seeking to buy insurance, it could be a very costly business, especially if you’€™re a first- time buyer. Since you’€™ll be likely unfamiliar with the marketing terminologies delivered in flowery presentations, there’€™s a chance you might give in to the traps carefully prepared by insurance companies for buyers just like you. These are just some tips you can take note of to get cheaper policies.

Get only the coverage you need

Many people fail in this department. Some people may get too little coverage only to find out that they need more, thus paying more for additional coverage. Meanwhile, there are others who tend to get too much coverage, making them pay much more than what is necessary.

Shop around

One of the simplest things you can do to limit your costs is to shop around for the best deal. A common mistake buyers do is jumping on the first deal they run into. There are many companies out there and they can offer you different rates, so make sure you study the market first.

Avoid adding expensive riders

It would be likely that an agent will offer you extras like accidental benefits or living benefits, which could even make your premium rise. If you’€™re planning to add any riders, make sure you really need them.

Check your credit score

Many people forget the impact of credit score on every financial move they make. Your credit score plays a major role even in buying life insurance, since it reflects if you can make payments on time. Before applying for any insurance, make sure you review your credit report, fix any errors, and pay your bills on time.

Inquire about payment discounts

You can’€™t expect insurance companies to reveal any available discounts that you are eligible to most of the time. So it is your obligation to ask about possible discounts, such as paying for your premiums in full annually instead of paying them monthly.

For specific types of insurances, such as disability/ income protection and life insurance, there are basically three factors that could affect your premium- age, medical history, and lifestyle. While there’€™s nothing you can do about the first two, there are a number of things you can do to improve the third one.

Lose weight- remember that during the application, your vital signs and weight might be obtained. Being overweight might also increase your blood pressure, cholesterol levels, and your risk to more diseases.

Quit smoking- smoking increases your premiums significantly, obviously because of its accompanying health risks. If you quit smoking, not only can you cut on insurance costs, but you can also have better use of your cigarette allowance, not to mention the diseases you could avoid.

Reducing alcohol intake- part of the medical exam is assessment of your drinking habits. If you limit your alcohol consumption, you are less likely to become a high- risk client for the company, thus you’€™ll have the right to bargain for cheaper premiums.

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We do not provide any financial advice relating to insurance or other insurance related topics. IncomeProtectionAdvisor help users get a competitive income protection insurance quote. We do this by working with FSA regulated partners who search and compare insurance policies from dozens of UK insurers. The quote you receive will be based on the information you submit to us. Our service is free and you are under no obligation to accept the quote you receive.
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