Understanding Insurance Policies

Understanding Insurance Policies

2 Tips for Saving Money on Your Insurance Policies

Samantha Reynolds

Everyone needs to carry insurance. Many people purchase their own individual plans for health, life, auto, homeowners, and other insurance. By the time you add all of these policies together, you might be surprised at how much you spend on your insurance premiums each month. Fortunately, there are some simple things that you can do to save money. Here are some tips.

1. Raise the Deductible and Set Up a Savings Account

A good alternative to paying on a policy that has a high premium with a low deductible is to raise the deducible and then set up a savings account. For instance, on your medical insurance you might pay 80% less on your premium if you choose a policy that has a high deductible, so anything you see the doctor for you might have to pay out of pocket. However, each month the amount of money you saved in premiums would go into a health savings account. Then at the end of the year, if you haven't used this money for health needs, it will roll over into the next year, or you can use it for things like LASIK surgery, medical supplies, and much more. That way all the money doesn't just go to the insurance company; instead you can keep the extra money for yourself in case you don't use it.

Even though health savings accounts are the most common way to do this, you can set up your own account with auto insurance, home insurance, and so forth.

2. Bundle All Your Policies Together

Since you probably have multiple policies, you should know that you can save money on bundling all of the policies together. What this means is that you choose one insurance company that you like and move all of your policies or as many as you can to that company. When you put all of the policies with one provider, you will get a large discount on all of the policies. For instance, having three policies with one company may save you as much as 10% per policy, so 30% on your total bill. This is well worth looking into.

There are lots of difference ways to save money on your insurance each month. However most people just don't know how to do it. Talking to an insurance representative and many companies such as Ratcliffe Insurance may help you to discover hidden discounts and options for you to make sure that you are saving money each month. 


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About Me
Understanding Insurance Policies

After I moved out of my parent's home, I started learning more and more about insurance policies. I was involved in a bad car accident, and I ended up working with my car insurance company as well as my medical and dental insurance companies. I paid my premiums and enjoyed coverage, but I didn't really understand how the entire insurance claim process worked. I wanted to make this blog to help other people like me to learn more about insurance coverage. Check out this blog for more details on insurance coverage, how to file a claim, and what you should expect throughout the shopping process.