3 Insurance Policy Hacks You Need to Know
For the first time in more than a decade, auto insurance rates have gone down by an average of 1.7% at the beginning of 2021. It’s still high, though, with the average cost sitting at $1,636.
That’s a lot to shell out for a single insurance policy, which is rarely the case for most folks in the US. If you’re like most people, you likely need health and homeowner’s insurance, too.
Fortunately, there are insurance hacks you can do to keep your costs down. Read on to discover how to save money when buying a new policy.
1. Understand What Goes Into Your Insurance Rates
Your age, driving record, how often you use your car, and your car itself can make or break your car insurance costs. For homeowners’ policies, the home’s location, age, and condition are the top factors. As for health insurance, the chief factors are your location, age, if you have dependents, and if you smoke.
Previous claims, and whether they got denied or paid, affect most types of policies, too. Insurance companies can deny claims based on the findings of their insurance adjusters.
For example, not being aware of what not to say to an insurance adjuster can lead to claim denial. However, that denied claim will remain on record, and insurers will use that to spike a new policy’s rates.
2. Make Adjustments Based on Those Price Factors
Senior drivers may have higher accident risks due to their age and declining health. Young drivers face also face high auto insurance rates due to their elevated crash risks. Studies found that inexperienced drivers can be five to 10 times more at risk of crash injuries.
While you can’t change your age, many other insurance price factors are modifiable. For example, you can take defensive driving classes to boost your driving skills. Many insurers offer discounts or lower rates to drivers who took such lessons.
You can’t change your home’s age, either, but you can keep it maintained to increase its lifespan. Repairing plumbing systems, heaters, and air conditioners will also boost its longevity. All these, plus a home security system, can help lower your homeowner’s insurance rates.
As for your health, look at the aspects you can modify, such as your weight and tobacco use. Modifiable health risks drive health insurance rates because they increase healthcare spending. In fact, one study linked them to over $730 billion in healthcare costs in 2016.
Also, note that life insurers use pricing factors similar to that of health policies. So, by improving your health and kicking bad habits, you may secure lower life insurance rates, too.
3. Always Take Time To Compare Insurance Offers
The United States is home to a whopping 5,965 insurance companies. Of these, 2,496 provide property/casualty (P/C) insurance, including auto and homeowners’. Over 900 are health insurers, while more than 800 are life insurance providers.
Comparing and acquiring quotes from all those companies would take forever. Fortunately, you don’t have to, thanks to insurance comparison websites. These tools allow you to collect plan details and price estimates from many providers in one go.
Take advantage of these sites to have an easier time finding policies that best suit your needs.
Use These Hacks To Secure the Best Insurance Policy
Whether the insurance policy you need is mandatory or not, the fact is, it can cost you a lot. That doesn’t mean it should cost you a good chunk of your paycheck, though. To ensure that doesn’t happen, be sure to follow the insurance tips we’ve discussed above.
Looking for more lifestyle and financial tips to help you live better and healthier? Then feel free to browse our recent news and education blog posts!
June Potter wrote this article on behalf of FreeUp. FreeUp is the fastest-growing freelance marketplace in the US. FreeUp only accepts the top 1% of freelance applicants. Click here to get access to the top freelancers in the world.
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