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How To Reduce Your Insurance Premiums

By: Stuart Broad

If you are looking to reduce your monthly expenses a great place to start is your insurance. Most people are overpaying on their insurance and are ironically insufficiently covered. This is mainly due to the rise of direct insurance companies who benefit by having their clients incorrectly choose their own insurance products. Let us take a look at some ways in which you can bring down your insurance costs:

Avoid Risk

The purpose of insurance is to cover loses as a result of unforeseeable incidents. However, some people mistakenly think that having insurance allows them to enter into high risk situations without needing to worry about the possible negative repercussions. Remaining as risk-free as possible will help you avoid losses and thereby avoid claiming from your insurance company. Clients who do not claim for a certain number of years (usually two or three) are rewarded with lower premiums and in some cases cash back.

Reduce Risk

If it is not possible to avoid risk entirely, like when driving on a public road, the next best option is reducing risk. Reducing risk for the average person involves securing your home and installing safety devices in your vehicles. You can install fire alarms, fire extinguishers, burglar alarms and smoke detectors in order to reduce risks to your home and possessions. Similarly, you can install immobilizers, car alarms and tracking devices in your car to reduce the risk of it being stolen. Insurance companies take note of these enhanced safety features and reward their clients with lower insurance premiums. Doing this is a great way of saving money and a superb way of securing yourself and your family.

Stay With Your Insurer

This option comes with the following clause’… as long as your current premiums are low’. Insurance companies reward their clients for not claiming and they reward them for staying with them by lowering insurance premiums. If however you do some shopping around and discover that your current insurer is charging you a lot more than other companies then do not let loyalty prevent you from moving.

Use the Same Insurer for All Your Policies

You can lower your insurance premiums significantly by buying your insurance policies for you car, home and life from the same company. By grouping your home insurance and car insurance into one policy you will save your insurer costly administration and marketing fees which in return results in lower premiums. People typically save up to 20% by bundling their policies.

Update Your Policies Yearly

Things are constantly changing and so should your insurance. During the course of the year you may sell that expensive jewellery that is covered in your home contents insurance policy. Your car decreases in value every year. If you are a business owner, you may have fewer or more employees. You may have gotten married or divorced. All of these events require that you revisit your insurance policies as you could be over insured, underinsured or inadequately insured if you do not. More often than not, as is the case with the sold jewellery and the car that decreased in value, adjustments made to your policies will result in you paying a lower premium. If you want to save money review your policies every year.

Shop Around

Thanks to the growth of insurance comparison websites, this is one of the easiest things you can do to secure lower insurance premiums. Using these sites instead of an insurance broker can be a double-edged sword as you might find cheaper insurance, but it could be because the policy offers less cover. Using an insurance broker is one of the safest and easiest ways to shop around because they do the leg work for you and provide you with professional advice.

Try one or two of these suggestions and see how much you can save on your insurance premiums.

If you are looking to reduce your monthly expenses a great place to start is your insurance. Most people are overpaying on their insurance and are ironically insufficiently covered.

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