Insurance companies can help cover those unexpected emergency life costs. However, more often than not, the insurance companies get the better end of the deal by asking more money from us than they ever end up paying out. Fortunately, it is possible to play the insurance providers at their own game. Here are few ways that you can stop being ripped off by insurance companies and start taking back control.
Make use of multi-policy discounts
Some insurance providers will provide multiple policies for a discounted price. For example, you may be able to get multiple drivers on one car insurance scheme for a reduced price, opposed to insuring everyone on different schemes. Similarly, if you’re a business owner, you may be able to take out a business insurance package which is much cheaper than taking out individual schemes such as employer liability, commercial property insurance and professional indemnity insurance.
Raise your deductible
If you’ve got some money put aside for a rainy day, why not raise your deductibles on your insurance schemes? A deductible is the amount you’re willing to pay out of your own pocket – for example you be willing to put several hundred dollars towards car repairs. This will dramatically lower your insurance rates and could work out cheaper in the long run.
Take preventative measures
Taking certain preventative measures can lower your insurance premiums. If you want to lower your car insurance, storing it in a garage or installing anti-theft devices could radically reduce your rates. If you want to lower your home insurance, installing a burglar alarm and having outdoor motion sensitive lighting could save you costs. Consider hiring a risk assessor that can tell you ways of lowering your rates.
Know your legal rights
Many insurance companies will try to get out of paying you any way they can. If you make a claim and you feel it is unjustly rejected, feel free to hire a lawyer to fight your corner. An experienced team of attorneys for car accidents might be able to help you win a case against a driver that is refusing responsibility, or possibly help get money through another kind of claim such as personal injury. Meanwhile, a home insurance lawyer may be able to help you get money on a theft or damage claim that an insurance provider may be adamantly rejecting.
Always shop around after a claim
No claims bonuses are a way of tempting you into not ever making a claim. However, these bonuses are hardly ever worth it – you pay insurance companies for covering emergency costs, so you might as well make use of their services when and if you require them. Of course, the pitfall of this is that your insurance provider may raise your premiums for making a claim, as you now pose the company more of a risk. Use this opportunity to shop for a cheaper deal. There will always be one company out there undercutting the rest and willing to ignore your previous claim. Use an insurance comparison site or hire a broker.