The Gerber Life Parenting Blog

Tips for Saving Money on Insurance

December 21, 2012

Family Setting Up Home Alarm SystemTips for saving money on insurance can affect couples and single parents alike. There are so many options and coverages, the choices can make anyone confused and frustrated. Some simple tips can save parents money that can be used for other necessities.

Increase deductibles. Increasing your deductibles can save you premium dollars every month. Yes, you are assuming a small responsibility for the risk of a loss, but home and auto insurance premiums will decrease, putting some money in your pocket each month. If you stay loss-free, your monthly savings will increase over time.

Other tips for saving money on insurance include installing protection for your home and auto. Fire and burglar alarm systems, along with smoke detectors, help protect your home from losses. Similarly, installing a reliable theft alarm helps deter stolen autos and comprehensive losses, e.g., vandalism. The more protection you employ, the more your risk of losses decreases.

Use “replacement cost” for your home insurance coverage. This eliminates the concern and risk of underestimating the real cost to repair damage. Insuring your home for replacement cost helps you restore your home to its prior condition, regardless of price increases (of which you may be unaware) of materials and labor.

Get insurance cost estimates before you buy that new car. Luxury and sports cars cost significantly more to insure than “conservative” models. If you absolutely, positively need that new Porsche, go for it. However, if you’re debating between a Jaguar and a Volvo, you might save considerable dollars by comparing the costs to insure each model.

Shop carefully for health insurance. Most people agree that health insurance needs a major “cost versus care” overhaul. However, we must deal with reality as it now exists. If you’re covered by an employer healthcare plan, review your options each year to learn if there are better choices than your current coverage. When considering private health insurance, compare plans in an “apples to apples” method. Often coverage that appears to be a “deal” includes dangerous exclusions, e.g., no coverage for pre-existing conditions, that could cost you thousands of dollars.

Develop a plan for life insurance. There is no “magic bullet” or “one size fits all” plan. You should consider your current and future life goals to design a comfortable program. If you have children, you might include some coverage plus savings, such as the Gerber Life College Plan. Do not forget your spouse. If he/she works, you want to protect future earnings. Should your spouse be a “stay at home” parent, still consider life insurance coverage, as you will have household care expenses should your spouse become deceased.

You need not be an insurance expert to implement these tips for saving money on insurance . You do need to employ some common sense, budget control and, most importantly, a plan. Even a plan needing “work” is better than no plan at all.



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Categories: Saving Money
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