How to save on insurance during tough economic times
Written by Aleesha McMullin | Published on: March 1, 2023 | Categories: Insurance
Everyone is looking for ways to cut back on unnecessary spending and protect their savings — especially during tough economic times or a recession. This may mean putting a pause on streaming subscriptions, cooking more meals at home instead of going out, or even being more mindful with how you drive to save money on gas.
Whatever your tactic is for saving money, keeping your home and car insurance coverage is more important than ever, as it protects you from unexpected expenses. Whether it's water damage in your basement or a rear-end collision on a snowy road, having the proper coverage in place will save you from paying out-of-pocket if the unexpected happens.
Reach out to your licensed insurance broker to discuss different payment options and consider some of these methods to save on insurance during tough economic times:
- Increase your deductible. While it may seem scary to pay more out-of-pocket if you need to make an insurance claim, increasing your policy's deductibleopens a pop-up with definition of deductible can reduce your premiumopens a pop-up with definition of premium, meaning you'll have more money in your pocket each month. Before you make any changes, check in with your budget to make sure you'll be able to afford your new deductible in the event of a claim.
- Bundle policies for a better deal. By bundling your car insurance and your home or tenant insurance with one provider, you could benefit from a multi-policy discount for being a loyal customer. Most providers will allow you to combine bills and payments and have a single deductible across multiple policies, and they may even outline any coverage gaps for you and let you know if you need to increase your policy limits or purchase add-ons or endorsementsopens a pop-up with definition of endorsements.
- Take advantage of insurance discounts. Along with bundling your coverage to get a discount on your premium, most insurance providers offer numerous home and car insurance discounts. Qualifying for these discounts often depends on where you live, your claims history, and whether you've applied additional safety measures to keep your home or car secure. Work with a broker to see if you qualify for any money-saving discounts, while getting the right coverage for your needs.
- Reevaluate your coverage needs. During tough economic times, it may be wise to sit down with your insurance broker to see if your current policies need to be revised. You may find that you're paying for coverage you no longer need or aren't taking advantage of a discount you now qualify for. While you should never remove or reduce essential coverage, there may be some optional add-ons or extensions that you can temporarily remove from your policy until your financial situation improves.
- Protect your property. Putting additional safety measures in place to protect your car or home is a great way to qualify for insurance discounts — but it can also help reduce your risk of making an insurance claim and having to pay your deductible. Installing a smart home monitoring system, updating your home's lock system, or adding an aftermarket anti-theft device or dash cam to your car can reduce the risk of theft, property damage, and your likelihood of making a claim — saving you from losing your claims-free discount or having your premium increased.
If you're hoping to cut back on spending, try not to stress about your insurance coverage. With plenty of options to adjust your coverage and payments, you don't need to sacrifice on necessary protection for your car or home.
While you're reevaluating your budget and current bills, reach out to your licensed insurance broker to discuss your coverage needs and explore your options.
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