Ways to save money on car and home insurance have become one of the most common concerns and questions among consumers, as the need for such protection has become almost as critical as having the privilege of driving in the first place.
As inflation rises, the cost of living also increases, and people naturally find ways to cut their costs without sacrificing the things they need; one of these expenses is safety, which insurance covers.
It is important to remember that saving money does not necessarily involve choosing the cheapest option, but rather taking into account what you need so that you do not pay for extra coverage.
So, for your convenience, Echo Of Tech has brought you several tips to get the best price when quoting insurance and ensure a good bargain.
1. Understand how the coverage works
In order not to spend more on car insurance and still ensure adequate protection, it is necessary to know what the coverage involves and select only what will actually be useful in everyday life.
At a basic level, car insurance will protect the essentials. More specifically, they cover:
- Theft and robbery: This is beneficial for people who would lose sleep if, for example, their car was stolen or robbed, because they would be adequately compensated.
- Collision: Important to ensure that damages in the event of an accident are covered.
- Fire and explosion: No one would expect any of this, but it is good to be sure of these extreme cases. In other words, it covers incidents that can happen to anyone.
Now let’s talk about customization! Here, extras such as window covering, intact headlights and wing mirrors, a waiting car and 24-hour assistance are included. But the question is: do you really need all of this? Consider your day-to-day life.
It may be a good idea if you use your car for work or for your family’s daily life. However, if you only use it occasionally, it may not make much of a difference.
So, what about window and wing mirror covering — it makes sense for those who live in busier or vandal-prone areas. However, if your car spends most of its time parked in the garage, you may question this investment.
2. Make the right choice with home and auto insurance
The choice is simple: only buy what really matters to you. There’s no point in paying for something you’ll probably never need.
For example, if you don’t travel long distances, it may not make sense to have unlimited coverage.
On the other hand, if you regularly commute and/or leave your car on the road, glass coverage may benefit you.
3. Know your needs in an insurance
During the pandemic, vehicle costs have skyrocketed due to reduced production and a lack of new cars on the market. However, at the same time, the cost of car insurance has decreased by up to 35%.
Most consumers have ended up paying more for their vehicles. In turn, saving on other facets, such as car insurance, is an advantage on the other side of the spectrum.
In most cases, insurance includes basic coverage to include protection against theft, explosion, fire, and other damages that may arise. However, there are additional coverages that you can include depending on your needs.
For some, a spare car is very important; for others, it is not. Consider carefully evaluating what is most important to you.
4. Research the discounts offered by the insurance company
Discounts are available in some cases, especially when the user did not use the insurance in the previous contract.
Be aware of loyalty programs and other incentives offered by insurance companies, as they can reduce the value of the policy.
5. Consider the value of the deductible and the premium
Understanding how insurance is priced can help you save a lot. In general, a higher deductible reduces the value of the premium.
This means that you pay less for the policy, but in the event of a claim, you will have to pay a higher amount. Think about your financial capacity and choose the alternative that best suits your profile.
6. Customize the assistance and additional coverages
Consider your car usage style: if you do not take long trips, it is not necessary to contract unlimited towing assistance, which can make the insurance more affordable.
On the other hand, including coverage for items such as glass and headlights is a good investment, since the difference in the cost of the policy is small compared to the loss if these items are damaged.
7. We cannot forget about homeowners insurance
This is a basic form of protection for your home that generally includes protection against fire, lightning and property explosion.
In addition, it has provisions for theft or robbery, as well as 24-hour assistance for specific maintenance or electrical repairs.
Depending on where your home is located, it may be wise to include coverage against floods and even strong winds. Of course, the purchase of these items depends on a complete assessment.
So, the ideal is to simulate the total price of the insurance based on different configurations and different brokers to determine the best one for your home.
No matter how good the offer may seem, it is always possible to negotiate. Based on previous simulations, you will have a good basis for arguing any price.
It is important to note that the appraisal value related to insurance is based on the amount needed to rebuild the property. Do not confuse this appraisal with the one that indicates the current market value of the property.
Conclusion
It is possible to save on home and car insurance – without sacrificing protection. But how do you do this?
The answer is to choose the coverage that corresponds to your usage profile, compare the options available on the market and use bonus programs.
This way, you will be better prepared for the unexpected and have something that always bothers you transformed into peace of mind while you enjoy your car and home.
By following these 7 tips, you will be much better prepared to get an insurance quote.
