Insurance is very important—in the long run, it can save you lots and lots of money.
Car insurance is a must-have. But don't forget homeowner's insurance and health insurance.
If you are a homeowner, you no doubt have homeowner's insurance that you're paying on semiannual or annual basis. Some of you may have your insurance payments packaged into your monthly mortgage payment—this is known as PITI, where your payments cov- er principal, interest, taxes, and insurance. The average homeowner pays about $700 a year in insurance, according to industry estimates. A simple way to put some bucks back into your wallet is to reassess your insurance needs and make sure you're not overpaying for insurance, or overinsuring yourself needlessly.
Now I'm a big proponent of insurance—and I strongly believe that many Americans are woefully underinsured. That doesn't mean, however, that millions of people out there aren't paying too much for the insurance coverage they do have. Look at the areas of coverage you have, whether that's health insurance, car insurance, or homeowner's insurance. In all these cases, you can raise the deductibles on your insurance policies and save yourself money.
Increasing your insurance deductible to $1,000 from $500 can save you 25 to 30 percent off your policy—a big chunk of money considering that nationwide, the average cost of annual car insurance is about $880 dollars, and for homeowner's insurance it is about $700 dollars. So raising your deductibles in these areas alone can mean a quick $395 in your bank account.
Health insurance costs, as you likely know, are all over the place. And while it's very difficult to give accurate average costs, the one thing everyone does agree on is that health care costs are rising. So if you can stand to have a higher deductible policy, that might be something for you to consider as well because you will certainly save money on your health care costs, and that money can be readily put right back into your pocket.
For those of you who have Preferred Provider Organization (PPO) plans in terms of your health coverage, you might also consider switching to an HMO plan. With an HMO plan, you are confined to visiting a specific group of doctors so, in general, HMOs are more restrictive. But if you find that your doctor is already in a certain HMO network, you could switch without worrying about not being able to see your regular doctor, and save $200 or so each month.
All of these things will fatten your bank account and leave you more economically prosperous, money savvy, and feeling good that you are fast becoming financially free!
Article Title : Insurance
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