10 Ways to Cut Down Your Insurance Costs

| September 11, 2013


What is insurance cost?

Insurance cost refers to the cost that is paid by the insured person to the insurance company to take care of risks that are likely to be incurred. The insured will pay the cost agreed at a given time intervals and in case the risk insured against occur, the insuring company will compensate the insured person. Risk is a loss that is likely to occur to the insured person’s property. It may or not occur and the insured person must pay the insuring company. Here are some of the ways that the insured person can do to cut down the insurance cost:

1.Always ask for discounts

The insured person can ask the insuring company to reduce the premiums by a certain percentage. Just take the AXA Phone Number and ask them for discounts. That way, the insured person will cut the insurance cost. The insured person can pay for a couple of months and ask for discounts. Discounts can also be given when the insured person can insure against many risks at once.

2. Your bills should be paid once in a year

The insuring company can give you a chance to pay your premiums monthly or semi annually. But if you pay them annually, you will pay less than the other modes. That way you will cut the insurance cost.

3. Raise the deductible

The insured person will probably pay the minor claims. By raising the deductibles, you will be avoiding small claims therefore reducing the risks of the insurer cancelling your claim and charging you higher premiums. That way you will be sure of compensation by the insuring company in case of risk occurrence.

4.The insured should maintain good credit

When one has a good credit record, he/she is likely to pay fewer premiums since the insuring company does believe that any person who uses his/her money responsibly is a responsible person and they don’t investigate your risks so much instead they just compensate you. They will not doubt you in case you report the risk to them they will just process for your compensation

5.Don’t be far from the emergency services

Being far from the emergency services like the hydrants in case of fire will increase your premiums. Therefore if you want to pay less to the insuring company, be close to such services that will prevent the occurrence of the risk.

6. Make the necessary upgrades and inform your insurer.
By upgrading, you increase the resistance of the insured property against the risk. This will make the insurer to cut the insuring cost.

7. Install detectors that detect troubles

When detectors are there such as fire alarms and anti theft alarms, the chances of risks occurring is reduced and the insurer will automatically reduce the premiums.

8. Check carefully what you have to avoid being covered for what you don’t own

Make sure that you know what you own and the coverage of the insuring company. Don’t pay for what you don’t have.

9. Insure all your risks under the same policy

This way you will pay less than insuring each risk separately. For example in case of insuring each pet separately, take a group insurance cover for all your pets. It will be cheaper.

10. Provide all the information about your property you want to insure.

Give both good and bad conditions of your property. The insuring company may fail to compensate if they suspect later that the property was not in good condition before insuring. You may pay more initially but at long run it will be rewarding since the insuring company will compensate rather than paying less and they fail to compensate because of a single condition that was not initially provided.

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Category: Car Insurance

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