How to Budget Effectively When Dealing with Insurance Costs

Insurance is a big part of your financial life. Each month, you may have to pay premiums for home insurance, auto insurance, life insurance, renters insurance and so on. These premiums can add up quickly! This is why it’s important to manage these costs while making sure that you’re properly insured. 

Below are some tips to help you budget your insurance costs more effectively. 

Bundle your insurance policies 

One of the most effective ways to save money on insurance is by bundling your policies. You can’t do this with all types of insurance, but you can do it with home and auto as well as certain types of business insurance. Talk to an independent broker, like the ones you’ll find at Soden Agency, to have multiple quotes run for you. This way, you can see which carriers offer the best packages at the best rates. 

Raise your deductible 

Raising your deductible is another fast and easy way to save on monthly premiums, but there are things to think about. For instance, if you raise your deductible on your auto insurance, you must have this money in case you are involved in an accident. If you don’t, it’s better to choose a lower deductible that you can afford to pay so that you are financially protected. 

Reduce your risk profile 

Insurance companies in NJ look at the risk profiles of their customers. Each company uses a different formula, which is why there are differences in quotes. Generally speaking, the higher your risk profile, the higher your insurance costs are. Fortunately, there are a number of ways to reduce your risk profile and be a more attractive customer. 

  • Avoid making small claims 
  • Maintain a good driving record 
  • Keep your credit score up 
  • Make safety improvements to your home 
  • Have a solid business plan 

Stay with the same insurance company

While it’s a good idea to compare insurance quotes in NJ every now and then, you don’t want to bounce around too much. You can save money by sticking with the same insurance company. Some insurance carriers offer loyalty perks, accident forgiveness and discounts to returning customers. If you’re not happy with what you’re paying, talk to your insurance provider first and see if they can lower your premium. 

Knowing what insurance policies you need and creating a realistic budget will help you get the most for your money. To have your insurance needs reviewed by an independent insurance agent, contact Soden Agency today. We get our clients the most comprehensive insurance at the best rates!