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How do I Save Money on Insurance?

By Bethany Keene
Updated: May 17, 2024

There are a few different ways to save money on insurance, whether you are looking to spend less on car insurance, life insurance, or health insurance. Looking for a budget car insurance policy can be a good way to save money, as long as you are willing to assume the risk that if anything happens, you will likely have to spend a sizable amount of money. The same is true for health insurance; purchasing a plan with a high deductible or catastrophic coverage can be a great way to save money on insurance on a monthly basis, but can mean that you need to spend a lot more if you ever get sick or injured. Choosing term life insurance over whole life insurance is another way to save money.

Car insurance can get expensive, especially if you have any accidents or tickets on your record. If this is true, some car insurance companies will reduce your rate slightly if you take a refresher driving course, such as defensive driving. In addition, be sure to maximize any potential discounts on your policy; safety features in your vehicle, for example, can also help you to save money on insurance. If you own your car, reducing your coverage to the minimum required by law can also help to save money. Another way to save money on insurance is to increase your deductibles for each aspect of the car insurance, which will help to lower the monthly premium.

Health insurance and life insurance are also expensive types of insurance. It is possible to save money on health insurance by only purchasing catastrophic coverage, or a plan with a very high deductible to reduce monthly premiums. Some plans allow purchasers to deposit pre-tax funds in a Health Savings Account each month which can then be used for medical expenses as another way to save money on insurance. When purchasing life insurance, it is important to remember that a healthy lifestyle, such as maintaining a healthy weight and quitting smoking, will help to reduce premiums. In addition, purchasing term life insurance for a specific period of time, such as 20 or 30 years, can save a great deal of money when compared to purchasing whole life insurance.

It can also help to shop around for different insurance policies, whether you are considering car, health, or life insurance, since different companies may offer substantially cheaper policies. Even if you've been with a company for a number of years, you may be able to find cheaper insurance elsewhere, as many companies offer incentives for changing companies. You can do this by calling companies individually and requesting a quote, or by getting a collection of quotes through a third-party company. These comparison companies exist to help you find the best rates, and can easily be found by searching online.

WiseGeek is dedicated to providing accurate and trustworthy information. We carefully select reputable sources and employ a rigorous fact-checking process to maintain the highest standards. To learn more about our commitment to accuracy, read our editorial process.
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