Budgeting to Pay Multiple Insurance Policies

The average family has a number of insurance policies, and each one of them are of equal important. But having numerous policies also means paying for them. Regardless of your budget, you have to make sure you can keep your insurance costs in a manageable range. How can you do so?

Your insurance policies will vary in costs. However, with the right care, you can ensure first that you always pay the bills. Then, you can also work with one of our agents to guarantee that you always pay the most-affordable cost for your coverage.

Typical Policies and Their Costs

Families might have multiple types of insurance, such as:

• Homeowners or renters insurance
• Car insurance
• Life insurance
• Health insurance
• Umbrella liability insurance

Each of these policies will offer various types of coverage. Depending on the policy you buy, where you live and various other factors, the cost of your policy will vary. For example, the average homeowners insurance policy will cost about $35 per $100,000 in home value.

Now, think about paying $35 per month for each insurance policy you own. For just the five policies above, that would be a cumulative cost of $175. But, since it is probably impossible that you will pay $35 for any of these policies, you can expect them to take a chunk out of your budget.

You must pay your insurance premiums. Otherwise, you risk the cancellation of your policy. Not only will cancellation leave you vulnerable to other risks, but also it will make it harder to get affordable coverage in the future. Some insurers refuse to re-issue policies to those with a history of lapses. Others significantly increase premiums for re-issues after cancellations.

Making Sure You Can Afford Coverage

There are multiple cost advantages that you can utilize to help you save on and afford your various insurance payment.

• Set up your bank account to automatically pay the policy’s premium on its due date.
• Consider bundling your various policies with the same insurer. Many insurance companies offer discounts for customers who bundle multiple policies. If you bundle, you might also be able to set up payments so that all premiums pay on the same date.
• If you can afford it, pay premiums in-full at the beginning of the term. By doing so, you won’t run the risk of missing a regular payment.
• Ask your agent what other discounts you qualify to carry. Most award multiple discounts that can reduce a client’s premiums.
• Adjust your various policy deductibles. The higher the deductible you carry, the lower your premium might be. However, don’t carry so high a deductible that you can’t afford to cover personal cost losses.

Also Read: Can You Bundle Insurance For Two Homes?

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