One of the certainties of life is death and taxes. Throughout your life, you’ll pay hundreds of thousands of dollars in fees that are unavoidable. Here are some quick ideas for making sure you’re not paying a penny more than necessary for life’s little expenses.
Shop Around
When it comes to getting home or car insurance, you should always shop around for the best prices. Many people avoid this step because it’s time-consuming to reach out to multiple home and auto insurance companies. But putting forth a little effort now can save you hundreds in the long run. When you comparison shop for car insurance, you make sure you get the best rate. Comparison shopping yearly will ensure your car insurance prices remain steady as long as you’re a safe driver.
Ask for Discounts
Whether you’re getting insurance on your car or paying property taxes on your home, speak with a financial advisor who can find discounts. The government offers tax incentives to new homeowners and electric car owners that are not provided otherwise. Speak with a financial professional to see if any of the recent purchases in your life qualify you for these tax breaks and incentives.
Understand Your Coverage
When buying home and auto insurance, make sure you know exactly what should be covered. Many homeowners make the mistake of insuring their land value, thus jacking up the price of the monthly premium. No matter what happens to your home, you still own the land and its importance. Therefore, it doesn’t need to be insured alongside the house. The same can be said if you own an older model car. You should calculate the cost of your deductible and annual coverage for insurance. If it costs to insure your vehicle annually more than the car is worth, then comprehensive and collision policies can be dropped.
Long-Term Discounts
While it can be tempting to hop between insurance providers to keep the best rate yearly, you may be missing out on a long-term discount. Some insurance companies offer greater discounts to customers who have been with them for a while. Customers who stay 3+ years get 5% off on average, while those who remain 6+ years can get up to 15% off. The discount you’ll get in this situation depends on your driving record and how long you’ve been with the company. Don’t hesitate to ask your insurance agent if there is a long-term customer discount.
Increase Deductible
For home and auto insurance, you can get a lower monthly premium by increasing your deductible. A higher deductible increases your out of pocket costs but lowers your monthly payment. Research suggests that upping your deductible from $500 to $1,000 saves on average $200 a year. Those who are worried about making the deductible payment should save towards the deductible amount in a bank account for when something happens.
Credit Score
Your credit score can have a big impact on what you pay for insurance, car payments, and your mortgage. Lenders and insurance companies view your credit score as an extension of your overall health. A high credit score means your finances are in order and you are less likely to default on your loans. You’re also less likely to be experiencing financial stress, which could cause erratic driving habits.
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