Are You Overpaying for Insurance? How to Lower Costs Today

Buying insurance is a part of life, but sometimes, you wind up paying far more than you should. Unfortunately, getting out of an insurance policy can be a costly endeavor. You may not be able to cancel your term early without facing hefty fees. Are you better off paying through your policy, or taking the hit and paying it off now? In this guide, we’ll cover some of the reasons people are overpaying for insurance and help you find some practical ways to save more each month.

How to Find Out if You’re Overpaying

One of the biggest reasons people are saddled by costly policies is lack of research. They may have thought they were getting a great deal, but without comparison shopping, they never found out what they were missing. Whenever you buy a new insurance policy, you should always request a free estimate from at least three providers.

What’s more, having a figure from a company’s competitor could get them to lower their offer. When you are looking to buy insurance, it’s also a good idea to research average rates in your state. Other factors, like your age and health, may also come into play. Ask people you know how much they pay as well. You might be surprised at how much you’re losing for coverage that’s half the price somewhere else. Thankfully, you aren’t stuck with one policy forever. Even if you can’t cancel your coverage right now, you can look for ways to lower your current payments.

Raise Your Credit Score

Your credit score plays a large role in how much you pay for nearly every type of insurance. Work on raising your score by paying down debt, using credit cards responsibly, and avoiding any unnecessary charges. Those with low credit scores can pay double the average rate for homeowners and auto coverage. Once your score is higher, you can reapply to your current company or switch providers for a much lower rate.

Take Out a Personal Loan

You may not have bad credit or necessarily need to change coverage right away. However, you may still be paying more than you’d like for all your policies. In this case, personal loans can help you cover your premiums until you can change coverages. Borrowing a personal loan through a private lender helps you pay off debt, tackle bills, and manage your finances more effectively. You can customize your loan and choose how much you borrow, your repayment terms and the interest rates.

Make Positive Lifestyle Changes

There is such a thing as life insurance with no medical exam, but that is not right for everyone. If you fall into that category but still want to save money, you can lower the cost of your life insurance premiums by adopting a healthier lifestyle. The goal is to minimize your medical risk as much as possible. Focus on things like a better diet, no smoking or alcohol. This can reduce your risk of heart disease, diabetes and other conditions. You can not only enjoy greater health but also lower your life insurance premiums. On top of that, you may find that you’re able to make better contributions toward a whole life insurance policy that generates a cash value.

John Otero

John Otero

John Otero is an industry practitioner with more than 15 years of experience in the insurance industry. He has held various senior management roles both in the insurance companies and insurance brokers during this span of time. He began his insurance career in 2004 as an office assistant at an agency in her hometown of Duluth, MN. He got licensed as a producer while working at that agency and progressed to serve as an office manager. Working in the agency is how he fell in love with the industry. He saw firsthand the good that insurance consumers experienced by having the proper protection. John has diverse experience in corporate & consumer insurance services, across a range of vocations. His specialties include Major Corporate risk management and insurance programs, and Financial Lines He has been instrumental in making his firm as one of the leading organizations in the country in generating sustainable rapid growth of the company while maintaining service excellence to clients.