Let’s face it, spending hard earned money on insurance isn’t anyone’s idea of a fun time. Despite this, having insurance is an important part of life. There are a lot of risks involved with not having any insurance. It’s illegal to drive a car in Florida without at least some insurance. Furthermore, home and life insurance are important ways to make provision in case of disasters or tragedies. Cancelling isn’t really an option, but there are still many ways you can save money on your insurance policies.
Why You Shouldn’t Cancel Your Insurance
The money you spend on your insurance every month might seem a lot, but if the need to claim ever arises, it might look like a drop in the bucket compared to what you need to claim. A lot of people try to save money by cancelling their insurance, or taking out only the minimum cover, but this isn’t wise.
As stated, there are minimum requirements for car insurance in Florida. However, even the minimum insurance coverage is unlikely to help in some cases. Luckily Florida divers are required to have at least some coverage – so in the event of an accident, you won’t be left completely empty-handed.
Seeing as it’s illegal to drive without car insurance, many people attempt to cancel other insurance policies instead. Once again, cancelling isn’t a good idea. Both life and homeowners insurance can be critical in certain condition. Florida often experiences hurricanes and storms, so cancelling these policies can do more harm than good.
How to Save on Car Insurance
The minimum car insurance coverage in Florida isn’t nearly enough. At $10,000 for personal injury protection and an additional $10,00 for property damage liability, Florida drivers with the minimum insurance aren’t truly covered for much.
It goes without saying that better coverage is strongly recommended. Unfortunately, better coverage is also likely to cost more.
Shopping around for the best premiums is a great way to get a good deal on your car insurance. Of course, you should learn more about different kinds of car insurance coverage. Ideally, you’ll want a comprehensive insurance policy that covers the following:
- Personal injury protection: This coverage is to pay for injuries you and your family sustains in a car accident.
- Property damage liability: This is to pay out damages to someone else’s property if you’re at fault in an accident. It can cover damage to any property you damage by driving into it, such as buildings and other vehicles.
- Bodily injury liability: This is to cover injuries you cause to other people in an accident where you were at fault. Money claimed from this form of coverage can also be spent on funeral costs or lost wages as a result of hospitalization.
Lastly, you also want to make sure your own car is adequately covered in the case of an accident. When getting quotes, ask each insurance provider how much the policy will pay out in case of an accident.
If you have money saved up in the bank, opting for an insurance policy with a higher deductible is a great way to save on your monthly installments. Just keep in mind that a higher deductible means you’ll need to pay a larger part of the costs in the case of an accident.
How to Save Money on Homeowners Insurance
Homeowners insurance isn’t a legal requirement in the state of Florida, but this doesn’t mean you can cancel your policy at any time. Most mortgage lenders require you to have some form of homeowners insurance, so if you’re still paying installments on your property, now wouldn’t be a good time to cancel.
On the other hand, if you haven’t bought a house yet, but you’re looking for one, you’re in a great position to get the highest amount of savings on your homeowners insurance. But there are still great ways to save for those who already bought a property.
Some of the main factors that will contribute to the cost of your homeowners insurance include:
- When the home was built
- Material used to build the home
- Having tenants
- Your claim history
- Your credit score
If you want to pay low premiums, the best location for a home is close to a fire station. It’s also best to opt for an area with a lower crime rate. Homeowners with properties in areas that are at risk for natural disasters will pay more, but buying in areas with high winds or storms isn’t something all homeowners can avoid.
As a general rule, the premiums will be lower on a newly built home than an old one. Old homes have old plumbing and electric wiring, which poses an increased risk for water leaks and electrical fires.
If you’ll be occupying the property yourself with no tenants your premiums should also be lower than if you rented out any part of your property.
The overall condition of your house is also important – the newer your roof, the less you’ll pay in premiums. This is because an old roof is at higher risk for damage in stormy weather and leaks in rainy seasons.
As a last point, wood burning ovens and fireplaces can also increase your insurance costs, as they pose a fire hazard.
Homeowners Insurance Discounts to Ask About
The best way to save money on homeowners insurance is to improve your credit score, shop around for lower quotes and ask about discounts. Some of the discounts you might qualify for include:
- Claim-free discount
- Homeowners association discount
- Nonsmoker discount
- Water sensor discount
Installing water sensors to detect leaks in your property before they cause too much damage can add a lot to your savings. Getting smoke detectors can also reduce your premiums.
How to Save Money on Life Insurance
If you’re trying to save money on your insurance, chances are life insurance is one of the first things you want to cut. It isn’t a good idea to cut your life insurance coverage too much – especially if you’re young and still paying off a mortgage.
This doesn’t mean you can save on life insurance though. Getting healthy is a great way to save money on your life insurance. As an added benefit, you’ll also feel great when you make these changes. Simply quitting smoking could already lower your life insurance costs.
Another good way to lower your life insurance costs is to have a look at your finances and establish how much cover you really need. You might find that you’re insured for much more than necessary.
There may also be some additional benefits in your policy hiking up its price. For instance, many insurers will add a benefit where there’s an larger payout for accidental death (even as much as double), unfortunately, this benefit can increase the cost of your premiums. Another benefit that can increase premiums – the option to waiver payment of premiums if the insured becomes disabled. Or, the option to get a certain amount of payout if the insured becomes disabled.
Realistically, look at all the benefits offered by different life insurance providers and pick an insurance plan that best suits your need. You might not need benefits such as payout for if you become disabled. A lot of disabled persons are still able to work and earn a living.
When shopping for life insurance quotes, rather choose providers with years of industry experience. Also look at reviews to see if the insurer pays out as promised when necessary. Life insurance is often meant to pay out when you’re no longer around to fight for your benefits, so it’s better to know you’re dealing with a trustworthy insurer from the start.
The Overall Best Way to Save Money on Your Insurance
Bigger deductibles will always lower your premiums, but if you ever need to claim, it will hike up the cost significantly. If you’re confident that you have enough savings and you life a lifestyle that’s responsible enough, you can opt for higher deductibles, but this isn’t the best way to save money of your insurance.
Shopping around for the best quotes is also great, but always make sure your insurance provider will pay out if you need to claim. Also be careful about reading what is included in each policy you get a quote for. Some policies might look cheaper, but that might just be because you’re not getting enough cover.
The best way to pay lower premiums is to live responsibly. Take care of yourself and your assets. Maintain your car and house as needed. Replace your roof or tire when replacement is due and check for details like when you should redo window caulking on your home or top up the oil in your car.