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How to Get the Lowest Cost Insurance

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Getting the insurance coverage you want at an affordable price may be easier than you think. Shopping around, opting for a higher deductible, and asking for discounts will help trim your insurance prices. And being proactive about your health and your driving record will help ensure that your insurance costs stay low. With just a few smart moves, you’ll pay less for insurance.

Shop Around

This six-step, decision-making model can help you choose the insurance plan that’s right for you. The first step is to create an inventory of your current policies using this worksheet.

  1. Define your goal. Be as specific as possible with insurance goals. For example, “We need an affordable health plan for a family of four with monthly premiums below $900 per month,” or “We need a life insurance policy that builds cash value over time.” Start with this Insurance Plan worksheet to better understand your home, vehicle and health coverage.
  2. Establish your criteria. What are the features you absolutely must have in your insurance policy? And which features would you like it to have? Consider the cost of not having insurance, including high out-of-pocket expenses for unexpected medical needs, car accidents or home repairs. Monthly premiums are worth it when something goes wrong.
  3. Choose two to three good options. It’s elimination time. Remove any insurance options without your must-have features. Narrow down your list to just two or three different insurance plans. Don't be afraid to call each insurance company and ask all your unanswered questions.
  4. Identify the pros and cons. Make a chart so you can quickly compare the features and prices of each of your top two or three insurance choices. For example, a high-deductible plan will have lower monthly payments, but you will have to pay a lot more out of pocket before your insurance kicks in. Inexpensive premiums make it easier to keep your monthly budget, but even something as minor as a broken bone could suddenly land you in thousands of dollars of medical debt.
  5. Decide what’s best. Choose the insurance plan that best matches your criteria. You might not be able to find everything you desire, but if you shop around, at least you can feel confident that you’re getting the best value available. Use these insurance resources to explore your options.
  6. Evaluate the purchase. Did you stay within budget? Do you feel good about the insurance coverage that you choose? Reassess your insurance policies every year or so. It’s not a bad idea to request new quotes on car and home insurance any time your circumstances change. You may be able to get discounts for safe driving, good grades or safety improvements.

Ask for a Discount

Find out what discounts are available from your auto insurer. Insure your home and your cars with the same company and pick up a multi-policy discount. Use this Auto Insurance worksheet to assess your current coverage.

Be Proactive

Overall, the best way to maximize your insurance is to stay healthy, drive responsibly, get regular checkups and reassess insurance needs as your life changes.

[Any reference to a specific company, commercial product, process or service does not constitute or imply an endorsement or recommendation by National Endowment for Financial Education.]

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