Most of us groan each month when it’s time to pay insurance premiums. Insurance is one of those things that matters a lot to your finances because it can protect your assets. Paying your premiums can protect you against a situation later on that results in bigger losses. Most of us can’t pay to replace a whole house, or handle the kinds of hospital bills you wind up with when you have a major injury.
Just because you have to pay for insurance doesn’t mean that you get nothing from it. Here’s how to get the most out of your insurance policies:
1. Understand What’s Included in Coverage
Pay attention to your coverage. You might be surprised at some of the items included in your coverage. Health plans are required to cover the cost of a preventative visit each year. There’s no reason not to go to the doctor for an annual checkup if it doesn’t cost you anything. Many car insurance policies offer coverage for rental cars. No need to pay for the extra coverage when you already have the coverage you need. From home insurance policies that cover theft (even when someone steals out of your car) to the trip cancellation coverage you might have just from using a credit card, understanding your coverage can help you use what’s already available to you. You’re paying premiums, so you might as well take advantage of what you’re entitled to.
2. Look for Flexibility
Some insurance policies are flexible and come with various riders that can make the product better work for you. Find out whether or not there are some flexibility, including some life insurance policies that come with long-term care riders. This can help you tailor your coverage a little bit so that you cover a long-term care situation in addition to ensuring that your family is protected in the event of your death.
You might also have other flexibility in coverage for your car or home insurance policies. Find out what is available to you so that you can get a policy that fits your needs.
3. Check for Discounts
If you want to get more bang for your buck, look for discounts. Many insurance companies will give you a discount if you have more than one policy with them. Look for ways to get a multi-line discount. On top of that, if you are married, some life insurance and long-term care policies offer couple discounts. If you both get a policy, you can see an overall discount. This can make sense in many cases.
When I was growing up, my parents got a discount on my car insurance coverage because I had good grades. Today, I am with an insurance company that refunds my 25% of my premiums when I go three years without a claim. Find out if you qualify for special discounts, and do what you can to maintain those. When combined with other ways to make the most of your insurance policies, you can save money, protect your assets, and do so without breaking the bank.