Is your goal to save money? You're not alone. One of the most common goals by Canadians is the desire to "save more money."To help you succeed, Kanetix® compiled a Top 3 list for three of the most commonly asked about insurance products-auto, travel, and life insurance-that will help you save you money this year.
On auto insurance
- Ask about discounts
Most insurance companies offer a "Multi-vehicle discount" for customers who insure more than one car on the same policy. This can add up to a discount of up to 10 per cent off both cars. Get another five per cent off your premiums if you qualify for the "Multi-line discount". Most companies offer this savings as an incentive to get your home insurance business too. But wait, there are more discounts to be had. Additional common discounts include the anti-theft, age, low mileage, occupational and auto club discounts all of which could save you money if you qualify.
- Increase your deductibles
Often people select lower deductibles, so their out-of-pocket expenses are minimal at the time of a claim. But truth is, the higher your collision and comprehensive deductibles the lower your auto insurance premium. So why not minimize your out-of-pocket expense now rather than in the case of a "what if"? If you can afford a $1000 repair job, then raise your deductibles to $1000 and pay less for your insurance.
- Older car? Think about dropping your collision coverage
If you have an older car, consider dropping the collision coverage. Talk this one out with your insurer, as it's not always a clear-cut decision. You need to weigh the cost of the collision coverage with the value of your car and your chosen deductibles. For example, if you had a 10-year-old car worth about $1000, and your deductible was $1000, that collision coverage isn't going to help.
On travel insurance
- Buy one policy for the whole family
Buy one travel insurance policy that covers the whole family, rather than buying one policy per person. Family travel insurance rates are often available and are usually cheaper. As well, if you are travelling with children, keep an eye out for those insurers who will insure kids for free as long as a parent is insured along with them.
- Buy an annual multi-trip policy
Multiple-trip policies mean that for one annual rate, you will have emergency medical travel insurance coverage for every trip you take within the year after the policy is issued. Quotes for a variety of trip lengths are available too.
- Buy what you need - no more, no less
If you're taking a road trip, or going on a last minute getaway, chances are you really only need to buy emergency medical coverage. Anything else and you'll probably be over-insured and paying too much. With trips where you might like more coverage (like trip cancellation/interruption, baggage protection, and emergency medical) make sure you buy one all-inclusive travel policy that provides all three coverages you want, rather than purchasing separate policies. It will save you money.
On life insurance
- Consider term life insurance
Term life insurance typically offers you the most coverage for the least amount of money, and although there is no investment or saving component, there are many who would tell you to "Buy term, and invest the difference."
- If you're healthy, avoid guaranteed issue policies
Guaranteed issue policies typically do not require a medical exam, which is why they are generally more expensive. A guaranteed issue policy is available to everyone, healthy or not, and this is reflected in higher premiums. Note: Guaranteed issue policies are great for people who are unable to get any other life insurance. While it may be more expensive, it is still better than having no life insurance coverage at all.
- Buying for two? Consider a joint policy
If you're looking to get life insurance for yourself and your spouse, then consider buying one joint policy, instead of two individual policies. The premium is usually about 15% less for a joint life policy than 2 single life insurance policies of the same coverage amount.
On insurance, in general
No matter what type of insurance you're looking to buy, or have already purchased, the best way to save is to shop around. There's no way to get around it. Insurance premiums across insurance companies are not the same. In fact, each insurer's rates are so unique to them that it's pretty safe to say that no two are alike.Compare insurance quotes today to start saving.