Insurance companies put more than one policy
If you have home insurance, car insurance, life insurance, and anything else, see if you can not place multiple policies with an insurer. New policies are golden for insurance companies, so they can offer you better deals if you bring in more business. Call and find out what kind of rates you can get if you bring more policies to an insurance companies you may be surprised.
Of course, there is a clear risk here, and is that the insurance companies will not be able to pay in case of another financial crisis or a natural disaster. This risk is difficult to quantify, but beware of a very low cost policy of Bob’s Cabin Insurance versus a larger, well-established company. That is not always fair, but liquidity is likely to be a minor problem for a larger insurance companies.
Play against other insurance companies
The fact that you have gotten a budget does not mean that you have to accept it. If you are not getting quotes from at least three insurance companies, you are probably missing an opportunity to reduce your premium.
Once you get your appointment, it’s time to start negotiating. Tell one of the highest priced deals you would like to cover, but received a more competitive rate on other sites. Then take your counteroffer and call the other guys. Repeat this process until no one is offering anything else. It may require an hour of your time, but your savings in costs could be huge – especially if you are bringing several policies to the same insurance companies.
How to deduct from insurance companies
I recognize from the beginning that this is not the best option for everyone. Raising your deductible means you have to pay more out of pocket after an insurable event. If you do not have immediate access to money to cover your deductible, or are going to make you feel dizzy to pay for it, do not do it.
However, if you have a sufficient mattress to justify and you are willing to take the risk, this can be a surprisingly easy way to lower the cost of your insurance companies. Behavioral Economics says that we tend to exaggerate the low probability events in our minds, which can lead us to overinsure against them. A higher deductible allows you to hide your savings away, which in turn will make it increasingly easier to cover the deductible over time.
These simple methods require a little time on the phone and a little patience for negotiation. Give it an hour – you may be surprised by what you can achieve. While you’re at it, be sure to ask for discounts. If you are a certain age, a safe driver, or have certain safety features in place of your home or a car, you may qualify for additional savings.