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Reduce The Risk In Your Life to Lower Insurance Costs

By Erik Folgate

If you’re like me, then insurance costs are becoming quite a problem for your monthly budget. I live in Florida, and it seems like the insurance rates continue to rise and there is no sign of it stopping. You can call me conservative or republican, but I support individuals taking the initiative to help the problem of rising insurance costs rather than waiting for the government to do something about it. Insurance companies reward those people and those real properties that are less of a risk to them. Here are some ideas that I conjured up for how you can save money on your insurance premiums by reducing the risk in your life.

Homeowner’s Insurance

  • Install a security system in your home. Many insurance companies will give you a credit on your premium if you have a security system installed in your home.
  • Remove trampolines, diving boards, water slides, or other hazardous things from your property. You may think that trampolines and slides are fun, but insurance companies see them as a nightmare when it comes to a liability claim.
  • Install hurricane shutters if you live on the coast.
  • Buy a house built from concrete block and one with a hip roof. A hip roof looks like a trapezoid if you are staring straight at it.

Auto Insurance

  • Increase your deductible for comprehensive and collision coverage. This will help your premium quite a bit.
  • Buy a car with high safety ratings. A car with a lot of air bags, ABS, and anti-theft systems will warrant lower premium quotes from insurance companies.
  • Drive safely! You all know that the more accidents and tickets you get could affect the cost you’ll pay for auto insurance once you go to buy from a different carrier.

Life Insurance

  • Maintain good health. Non-smokers, moderate drinkers, and those that exercise and eat healthy will pay less for life insurance. This could help you save thousands over the long term. Stick to good level-term life insurance. Term life insurance does exactly what life insurance was intended to do – supplement your income to support your family in case of an unexpected death. Stay away from life insurance products that package together an investment product. Generally, the fees are terribly high, the rate on return is terrible, and life insurance was never meant to be an investment product.

Erik Folgate
Erik and his wife, Lindzee, live in Orlando, Florida with a baby boy on the way. Erik works as an account manager for a marketing company, and considers counseling friends, family and the readers of Money Crashers his personal ministry to others. Erik became passionate about personal finance and helping others make wise financial decisions after racking up over $20k in credit card and student loan debt within the first two years of college.

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  • http://chieffamilyofficer.blogspot.com Chief Family Officer

    Did you mean increasing (rather than reducing) the deductible on car insurance? If you did mean reduce, can you explain that one? I’ve always heard that increasing it would reduce the premium. Thanks!

  • author

    Hey, it was supposed to read “increase” Sorry about that, but thanks for the catch!

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