How to pay less in your insurance is the goal you set yourself year after year, have you ever achieved it?
From the outset, I tell you that it is not easy. Above all, because each year insurers have to adapt insurance premiums to technical criteria.
Do you want to buy your insurance cheaper, but do not know how?
Surely you have heard and read a thousand formulas to get how to do it, but in this article, I am going to tell you what has given me the best results. You will find the keys and tips that I recommend to really save on your insurance bill.
Is saving on insurance paying less?
I imagine what your answer is. And if I tell you that you are in a MISTAKE! What would you think?
Having well-done insurance can be synonymous with having to pay a higher price.
If you want to know what I’m talking about and that:
The objective is to reduce your insurance bill, I leave you these 7 + 1 tips.
1. buy the insurance tailored to you
You choose the content of the cable TV, the electricity rate or the suit that you will take to the party, well, why don’t you adapt the insurance to suit you?
For that, it is not worth it…
How can I not give a hand to my nephew who has finished his degree and while he finds a job in his business he has started selling insurance.
You ask for a loan from the bank and you leave with the money and a couple of policies, you return the money and the insurance is still paying.
Because these are some of the reasons that the insurance account fattens.
One of the first things they taught me when I started is that to sell insurance, the first thing to do is create the need to make it essential.
The first thing you should do is cancel those contracts that you find unnecessary.
You will have no choice but to buy the mandatory insurance for your company or family: automobile, professional civil liability, work-related accidents. The rest, the value before purchasing them if you need them.
More and more guarantees that insurers include in their policies trying to make them more attractive to the consumer. But most of the time it is not free. Dispense with those that you will surely never use because everything adds up to the price of the insurance.
You can also include some type of franchise to reduce the price. Find out how in this article What is insurance with excess?
This is only the first step on how to pay less, there are seven more for you to keep saving.
2. Check the conditions of your contracts
We take out the insurance and we don’t look at it again until we have a claim or the receipt seems expensive. We forget that any modification of the insured risk can change the insurance conditions, and over time everything changes even if you do not perceive it.
These are some of the conditions that determine the amount of the premium and that you should update:
2.1 Changes in the insured risk
The insurance premium is established according to the characteristics of the insured risk, therefore it is essential to notify the insurer of any variation it suffers.
With the last job change, you no longer need the car to go to work. The reduction in annual kilometers can make your car insurance a little cheaper.
That place that you had rented as a warehouse has now become a coworking center, in which various merchandise has made room for a shared collaborative workspace.
You are obliged to notify the company of any variation in risk, in some cases it will mean a decrease in the premium, in others, an increase. But this way you will have the peace of mind, in the event of a claim, that the insurer is not going to reduce the indemnities by applying equity or proportional rule to you.
2.2 Prevention and protection measures
They are not as determinative as a risk but they do influence the acceptance of the risk or increasing/decreasing the insurance premium.
You are a handyman and you have installed a system of surveillance cameras, detectors, and an alarm connected to your mobile to know what is happening in your home at all times. You have installed the latest anti-theft system in your car or you took the opportunity to change the old security door of your house for an armored one.
Acts like these go unnoticed, we do not report them to the insurance and we are missing an opportunity to reduce the price.
2.3 Number of employees and turnover
If you are not yet very familiar with insurance, you may find the statement in this section strange. Premiums in policies with general civil liability coverage are usually established on the basis of the turnover generated by the policyholder with the insured activity. Sometimes, as is the case in collective accident policies, the reference is the number of insured workers.
The holder of the policy is obliged to inform the insurer of variations suffering these values. Companies usually establish in the conditions of the contract when to do it, but they do not limit you to be able to do it in advance.
Good management of these statements can give you an idea of how to pay less on your insurance bill.
3. Update the value of the goods
But this is not worth what I pay for the insurance!
The bursting of the housing bubble caused real estate to decrease in value and the crisis is causing us to have negative inflation. Both situations advise you to review the insured amount of your damage policies.
The price of materials and labor has also been reduced, so rebuilding your property is cheaper.
The current situation, with zero inflation, makes the automatic revaluation clauses of the policy capital unnecessary. Think that with this clause the premiums will increase in proportion to the increase experienced by the insured capital.
Machinery and industrial furnishings age, so you need to review their value periodically. If necessary, modify the form of insurance to adapt it to each moment.
If you have doubts about how to do it, in this article you will find all the information you need: Learn to easily value your business before insuring it.
How much have you saved? There is still some more recommendation so you can see how to pay less.
4. Select the payment method
Many times splitting the insurance premium is a way of being able to face the payment. But many others mean making insurance unnecessarily expensive.
Insurers do not do it for free, so they apply surcharges for fractionation that in some cases exceed 6%. You have to know that the higher the fractionation, the greater the percentage to pay.
When you are splitting the payment, you are financing yourself through the insurer so it may be convenient for you to use another cheaper source.
This is a section that you should review periodically to adapt the payment method to your financial resources.
5. Group all your policies
If I buy you all this, what discount will you give me?
Placing all your insurance in the same basket is possible that you get preferential treatment. Better premium rates, additional bonuses, or discounts on purchasing new products are some of the advantages you can get.
From the moment you fill in the first questionnaire from the insurer, you begin to be classified and analyzed. The final deal will depend on the profitability you give, and this is linked to the volume of premiums.
I would only advise you to ungroup those specific insurances that need a specialized insurer.
Think big, in the final result of your account, it depends on it that your profits increase.
6. Insurance is not an expense
I often find myself who thinks that insurance is an expense that must be amortized as soon as possible. To do so, they go to the insurance for any incident, whether or not it is covered by the policy guarantees.
It has also happened to me on occasion to think: what another year I have paid the insurance without making use of it. It is an idea that fades quickly because if I have not needed to use it, everything has gone well.
When we use insurance with a clear desire to amortize what we paid, we damage our insurance record. The benefit you can get in the short term will be detrimental in the long run when your record penalizes future buy.
In the same way that today insurers know our history as a driver, it will not be long before they share that of the policyholder.
7. Price is not always the most important thing
The time has come to show you that the price of insurance is not the only culprit that you can save on your insurance bill.
I give you a simple example:
You have your home insured and the insured capital is 20% less than the real value. This means a saving in the price of the insurance of about 100 dollars per year. But you have a claim whose damages have been valued at 10,000 dollars, the company has deducted 2,000 dollars from the compensation, the 20% that you did not have insured. You insured with underinsurance and it has meant a loss of 1,900 dollars.
This assumption refers to a home policy but you can extrapolate it to any other insurance. An insufficient valuation of the goods, inaccuracy about the protection and prevention measures, or declaring invoices lower than the real one can be the reason that they pay you less or even nothing if you have a claim.
You may now think about changing the question: how to pay less … for how to save better on my insurance.
8. Get advice from professionals
If you think about how difficult it may be for you to continue any of the advice that I have left you, the solution is in the latter.
Trust your portfolio to a good insurance broker. He will know how to audit each of your risks, establishing what your needs are.
It will underwrite the risks in the best market conditions, both in coverage and premiums.
It will negotiate for you the payment terms of your policies and you will obtain fairer compensation.
There are more, but for now, I leave you to discover them by yourself, inquiring into the contents of this page, or visiting the closest professional.
In short, it is like eating from the menu or à la carte, it only depends on you.
Conclusion on how to pay less on my insurance bill
You may already have an answer on how to do it after you’ve gotten here.
Savings on the bill are not only achieved with a cheaper premium. To make this possible, it is not enough to cancel the insurance you do not need, also review the guarantees contracted, updating the risk, or the circumstances that define it.
Make sure that the insured sum is adequate and that the payment method adjusts to your economy. Think of insurance as an equity guarantee for the future and not as an expense that must be amortized as soon as possible.
If you group your insurance portfolio, you will improve your client position. And if you want to save time and of course money, trust your insurance broker, he will know how to get the best result.
While you keep saving, why don’t you leave us your comments answering the question:
How do you manage to improve your insurance bill, do you do it personally?