Get Out of Debt by Practicing Frugality - Save on Home and Auto Insurance
By Albertina Belmont

If you have a home, you must be paying home insurance and if you own an automobile, you must be paying auto insurance. In most states, it is mandatory for you to carry the minimum amount of insurance policies for both these assets. If your debt load seems insurmountable and you are working out on a plan to get out of debt, it is important for you to increase your income and practice frugality so that you could also save a decent amount of money and make extra payments towards the high rate debts. In this series, you should also be very careful while signing up for a home or auto insurance policy. Here is a brief rundown on how to save on insurance.

Shop Around

Whether it is about getting a new policy or renewing an existing policy, it always pays to shop around a bit. Do a thorough comparison-shopping by requesting free quotes from different companies. Compare these quotes and sign up with the one that offers you the lowest rates.

You Can Get Better Rates By Raising Your Deductibles

If you don’t make claims very often, raising your deductibles can be a great idea, as it can help you get insurance policies at much better rates. For example, you can easily save at least 25% on your insurance by raising your deductibles to $1000. This strategy can thus significantly reduce your monthly premium payments. Since this is a stage when your focus is mainly on the process to get out of debt, it is definitely worth saving on insurance by raising your deductibles.

Package Deal Can Also Save You Big Bucks

You can also save big bucks by opting for a package deal. Try to get both home as well as auto insurance policies from the same company. This way, you may qualify for some specific discount. I did this a few years ago and I was surprised to see that my overall premiums dropped about 18%. So, think about it.

Install Safety Equipment

You can qualify for an additional discount by installing safety equipment in your home as well as vehicle. Installing security systems, anti-theft systems, smoke detectors, and deadbolts does not cost you much, but once installed, they can substantially reduce your monthly premiums.

Don’t Switch To A Different Insurer Every Year

It has been found that if you continue with a specific insurer for more than three years, they offer you a special discount. Last year, my insurer reduced my premium by 5%. Therefore, if you are happy with the terms and rates offered by your insurer, you had better continue with them.

In order to evaluate the above points, all you have to do is make a few phone calls or visit a couple of websites. You will only have to spend an hour or so and you can easily trim your insurance expenses by at least 10%. Even if you save only $25 a month, you are actually saving a whopping $300 a year, that too, for just an hour of work. You can use this amount towards debt repayment and thus can speed up the process to get out of debt. Tomorrow, we will see how to save on housing. Meanwhile, do visit my website debt consolidation payday loan for detailed information on credit counseling and how to repay debts and enjoy a debt free life.

Article Source: http://EzineArticles.com/?expert=Albertina_Belmont

Homeowners’ insurance isn’t something that you can afford to live without. This is a necessity and something that most mortgage companies will require in order for a homeowner to receive the loan or mortgage. This article will show you some simple steps that you can take to ensure your homeowners’ insurance fits your needs.

This type of insurance can be very expensive. People who live in high risk areas, including areas near earthquake fault lines, major waterways, or other areas with high claims, usually will pay the most for coverage. People in high-risk areas often will have to pay annual premiums that cost thousands of dollars.

Expensive premiums aren’t limited to those in high-risk areas, however. Homeowners in suburban areas may pay between $500 and $1,000 a year for basic coverage.

Even though you can’t avoid buying insurance, there are steps you can take to reduce the cost.

Maintain Smoke Alarms and Security Systems

Having a burglar alarm that a central station or police station monitors can help lower your premium by 5 percent or more. You usually must show proof of monitoring to get this discount. A bill or contract can serve as proof for your insurance company.

You also need a smoke alarm. Smoke alarms are standard in most modern homes, but installing them in older homes can save 10 percent or more in annual premiums. They could also save your life!

Raise Your Deductible

The higher your deductible, the less you will pay in a monthly premium. Choosing a higher deductible, however, means that you will be absorbing the cost of replacing broken windows or sheetrock that is damaged by a leaky pipe.

Look for Insurers Who Will Give You a Multiple Policy Discounts

Many companies give a discount of 10 percent or more to customers who have other policies with the same carrier. You may receive these discounts on all the policies that you have with the company. You might want to consider getting a quote for other types of insurance from the company who maintains your homeowners’ insurance.

Plan Ahead for Construction

Certain materials are more flammable than others. This is something you should keep in mind when planning further construction projects. Wood, for example, will cost more to insure than cement or steel.

You also should consider any additional costs that you’ll have if you decide to build a swimming pool. Pools and other items that are notorious for causing injuries like trampolines have the potential to increase your insurance premiums by 10 percent or more.

Pay Off Your Mortgage

This is a step that may seem harder than the others on this list. Homeowners who pay off their mortgages and credit, however, usually see a drop in their premiums. There is a basic reason for this. Insurance companies typically feel that if the homeowner owns his or her home outright, they will take better care of the property.

Regularly Review Your Policy and Make Comparisons with Other Companies

You should review your policies at least once a year and compare these to other policies available on the market. You also should note any changes that have happened over the year and may lower your premium.

Getting rid of the trampoline, paying off the mortgage, repairing bad credit, and installing a security system are three major actions that could happen during a typical year. Notifying the insurance company about all of these steps and providing proof that they have happened could save significant money on a homeowners’ premium.

You should also look around your neighborhood to see if there are any changes that could reduce your premium. Installation of new fire hydrants or fire substations may lower your premium.

Other Things to Keep in Mind

These are items that every homeowners’ insurance policy should have:

* Guaranteed Replacement Value Insurance: Everyone should buy this insurance. This policy means that the home will be rebuilt after a disaster regardless of cost. The insurance company will not necessarily rebuild your home if this insurance is not part off your premium. It will likely cost more to build a new home than it did when you bought your home. This policy will absorb the cost and give you a cushion when construction prices increase.

* Endorsements: Endorsements are amendments to the basic policy. This enables homeowners to insure high-cost possessions if there is a disaster or loss. A formal endorsement will help with the claim process and ensure that the homeowner can get the full value of the item if there is a loss. Items you may want to have an endorsement for include furs, collectibles, antiques, and jewelry. If a woman wants to insure a diamond engagement ring, for example, the endorsement provides proof of ownership of the ring and proof of value. The woman would get an endorsement by having a jeweler appraise the ring and then end the appraisal to the insurance company.

Finishing It All Up

You should document everything in your home to avoid discrepancies and delays. You can do this by photographing and filming the entire contents of the home. These documents should be kept in a fireproof box, with additional copies in a safety deposit box.

As a note improving or reparing your credit can help reduce insurance premiums.

Doing this can help homeowners develop an inventory of their possessions after a disaster or loss. The insurance company will require that you do this before they pay a claim. Having this prepared in advance will shorten the length of time that it takes to process a claim.

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