Quick Insurance Tips

You can put yourself at undue risk if you reduce your insurance coverage the wrong way. However, there is a right way to do it. You may be able to save money on your coverage while still maintaining the protection you need. Below are three strategies to that can lower your costs.

• Reduce or Eliminate Costly or Unnecessary Insurance Coverage
• Raise Your Deductible
• Shop Around

Reduce or Eliminate Costly or Unnecessary Insurance Coverage

Paying for unnecessary or overpriced coverage is both costly and common.  Often families will have maternity insurance coverage on their policies when they are no longer in the baby making business.  This can add hundreds of dollars to their monthly costs.

Dental insurance is often over priced and families may do better when they pay for their dental care out of their pocket.

Raise Your Deductible

Low deductible policies are better than high deductible policies.  This is true, but the question is how much better?  Is a policy with a zero deductible $1200 better than a policy with a $1,000 deductible?  Probably not.

When you have a year with minimal expenses, you won’t get any money back from the company that sold you the low deductible policy.  If you have more good years than bad ones, you will probably do better with a high deductible policy.

When comparing low deductible health insurance policies with high deductible health insurance policies, you should look at the total cost.  That is the cost of the policy and the cost of the uncovered medical expenses added together.  Compare the total costs in a typical as well as the costs in a worst case scenario year.  Often you will find that a low deductible policy will be more expensive in both the typical year scenario and the worst case scenario.

Shop Around Frequently

Many people fail to shop around for coverage.  Most health insurance policies change their price approximately once a year.  Spending an hour with an agent once per year may save you thousands of dollars.