Insurance seems expensive until you need it. Cutting coverage may lower today’s bill, but it can leave your home, belongings or savings exposed to a loss you cannot afford.
Suze Orman had some very direct advice in her “Women & Money” podcast: “You have to be insured, people.”
This two-time Emmy Award-winning television host and bestselling author has spent more than three decades helping consumers manage their money. When it comes to insurance, Orman’s advice is not to pay whatever an insurer demands. It is to keep the protection you need while using deductibles, discounts and comparison shopping to bring down the cost.
Insurify lets you compare real-time quotes for home, renters and car insurance side by side without the spam.
Home insurance
Orman recommends placing your home and auto policies with the same insurer, if bundling produces a lower combined price. But a discount does not automatically make a bundle the cheapest option, so compare the total cost with separate policies.
She also suggests using an independent broker who can obtain quotes from several financially strong insurers rather than representing only one company.
Raising your deductible can lower your premium, but only choose an amount you could pay after a loss. A $5,000 deductible is not a bargain if an emergency would force you to borrow the money.
Tell your insurer about renovations, storm protection, security features and other improvements that could qualify for discounts. There are several other ways to save on homeowners insurance without weakening the coverage that protects your house.
Renters insurance
Renters should not assume the landlord’s policy protects them. It generally covers the building, not the tenant’s furniture, electronics, clothing and other belongings.
Renters insurance may also provide liability protection and help pay temporary living expenses after a covered loss. Orman recommends asking whether bundling it with auto insurance would reduce the total premium.
Compare both price and coverage. A policy that pays replacement cost may provide more useful protection than one that reimburses only the depreciated value of damaged belongings. These are among the details to consider when deciding whether you need renters insurance.
Car insurance
An older car may no longer need the same protection it had when it was new. Orman suggests reviewing comprehensive and collision coverage when a vehicle is worth only a few thousand dollars.
Compare the car’s value with the annual premium and deductible. Dropping optional coverage may make sense when a possible payout would be small, but liability insurance still protects you if you injure someone or damage their property.
Orman also recommends asking about discounts for low mileage, safe driving, multiple vehicles, anti-theft equipment and students with strong grades. Paying once or twice a year instead of monthly may avoid installment charges.
Before changing a policy, follow these steps to shop for car insurance using the same limits and deductibles for every quote.
Get the right coverage at prices that work for you
Prices are up on almost everything right now, and you don’t need to overpay for insurance. Take 10 minutes today to shave hundreds of dollars off your home, renters or car insurance. It’s one of the easiest ways to slash your bills.
Compare real-time quotes side by side without dealing with endless spam calls. It is fast, secure, and rated 4.7 stars on Trustpilot.
- Save up to $1,100 on your car insurance
- Compare quotes and lower your home insurance
- See your lowest renters rate in minutes
It costs you absolutely nothing to check.
Add a Comment