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Insurance is expensive. There's
no arguing the point. But it's not only legally
mandatory, it's essential protection for anyone
with a financially sound life.
But just because insurance can be costly doesn't mean
there aren't ways to save. Here are some you may have overlooked:
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| 10 ways to save |
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1. Buy coverage wisely.
While
most people could cover a $500 deductible, a $500,000 lawsuit would
be a different matter. So why do so many consumers pay extra for
low deductibles and carry close to the minimum on liability coverage?
Raise your deductible and increase your liability coverage. Your
premiums should remain roughly the same.
2. Keep a good credit rating.
Many insurance companies use your credit rating to determine whether
to insure you and how much to charge. See our upcoming chapter on
credit scores for more information.
3. Shop around.
You can pay
more than double for the same insurance, so it does pay to shop
around. Some states offer price guidelines for various types of
coverage in different areas, and a few states even put the information
online. Call your state
insurance department, and ask if they have pricing information
available.
If you call around for quotes, include
a few brand-name companies, as well as a few independent
agents who will shop more than one company for
you. And don't assume that you'll pay more for
a well-known entity.
4. Take advantage of every discount.
If you've gone a certain number of years without an accident or
ticket, store your car in a garage or drive less than a certain
number of miles each year, your company will probably give you a
discount. Ditto if your car has safety features such as airbags
or anti-lock brakes, or anti-theft devices such as a tracking system
or alarm. You often get breaks if you have more than one car on
your policy, if you buy your policy through the same company that
insures your home or if you pay your premium annually. Senior drivers
can get a discount for taking a defensive driving course. Likewise,
teens can shave a little off the premium by maintaining good grades
or taking a driver education course.
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