How to Save on Insurance

Given all the insurance coverage you need — health insurance, homeowner’s insurance, life insurance, auto insurance — those costs can take a large bite out of your bank account. Fortunately, you can reduce the amount you pay for insurance without jeopardizing protection.

To some people, a lower deductible (the amount you have to pay before insurance starts paying the bills) means you “get something” from an insurance plan. Others point out that plans with higher deductibles are cheaper.

In general, high-deductible plans are much less expensive than low-deductible plans. If you can raise and set aside the money you’d need to make your deductible, you can save on your insurance premiums.

Insurance is intended to cover risks you can’t afford to bear on your own. The higher the deductible, the lower the premium. By raising your deductibles to $1,000 from $250, you may be able to reduce your premium by as much as 25 to 30 percent.

Just make sure you don’t raise your deductible so high that you can’t pay that amount in case of an emergency.

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