A “Licensed and Bonded” Insurer, Get it?
This is a guest post submitted by Hannah, a reader who represents a number of writers in the financial community.
Whether it’s health insurance, life insurance or home insurance – we might all need it at some stage in our lives, so it’s best to know what will help you get the best deal.
There are so many factors that can affect the price of your insurance, so these 5 killer tips should help you get the best deal when it comes round to buying.
1. Take out your health/life insurance when you are young
Health/life insurance can be a very costly expense, particularly if you leave it until later on in life. So, make sure you take out your health/life insurance policy while you are young and healthy. It should be cheaper and will still cover you if something was to happen.
It is understandable that the younger generation probably don’t want to think about taking insurance out, but it is definitely worth considering.
In 2008, almost 47 million Americans (more than 20% of the population) under 65 didn’t have health insurance – if one of them was you, have a think about how you could have afforded expensive medical costs if something had gone wrong.
2. Protect your homeâ€¦ and lower your insurance costs
By installing security alarms and other security measures (such as certain types of roofing materials, certain sidings), you can drastically lower your home insurance premiums.
The theory is simple. If you have a home with no alarms, no locks and a broken door – there is more chance your belongings will get stolen. However, if your home is always locked, has an alarm and is very hard to break into, you are less likely to have your possessions stolen.
3. Consider how your lifestyle could increase insurance premiums
Do you smoke? Do you drink a lot? Do you take part in a lot of ‘extreme sports’? If so, have a think about how this may increase the cost of your insurance premiums.
For example, if you smoke, your health/life insurance premiums are more likely to be high – and the same applies if you drink a lot of alcohol. This is because you are personally putting your health at risk.
Again, the same applies if you participate in a lot of ‘extreme sports’. Some insurance companies will charge you more for your insurance because you are more likely to have an accident than someone who doesn’t participate in extreme sports.
4. Choose the right amount of excess
By choosing the right amount of excess, you may be able to lower the premiums. Someone with a high excess could have lower premiums because the insurer is technically covering less of the overall cost.
However, it is important to understand that by having a high excess, you will have to pay more if you do claim.
5. Finally, be honest and precise
Many of us skip details or aren’t detailed enough when it comes to our insurance policies – and we pay for it, because without full detail, the insurer(s) can’t get a clear picture of your situation, and this may lead to them charging you more.
For example, if you only give a rough estimate of the value of the possessions in your home rather than really thinking about it and working it out, you may not get the cover you actually require – and that’s not the insurer’s fault, it would be your fault for not giving enough detail and may land you in some serious debt.
So, to avoid any problems and to make sure you get the right deal when you apply for insurance, you should take your time filling out the paperwork and make sure you give all the details required.