How to Lower Your Consumer Insurance
- 1). Consider raising your insurance deductible to save money. Simply raising your car insurance deductible from $250 to $500 or $1,000 can save you hundreds of dollars a year without impacting your coverage.
- 2). Fund your own deductible by directing the money you save into a savings account or money market fund. For instance, if raising your deductible saves you $100 a month, direct those savings into a high-interest money market account with your bank. In less than a year you will have enough money to cover the cost of the higher deductible. If you do not have a claim the money will continue to grow, providing you with an emergency fund as well as a deductible fund.
- 3). Shop around for a better deal. The fact that your current insurance company had the best deal when you made your purchase does not mean it still has the best deal. It is important to conduct an annual insurance review, including checking your rates and making sure your coverage is still adequate.
- 4). Consider dropping collision and comprehensive coverage on your car if it is worth less than $3,000 to $3,500. If the resale value of your car has fallen below this threshold it may not be worthwhile to continue that expensive coverage.