6 Oft Neglected Cost Cutting Measures

By Author: Marcus Stalder
Total Articles: 491
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Measure #1: Travel Insurance

If you need to buy insurance every time you travel, you are probably wasting lots of money. Travel agents, airlines, websites, and tours always offer insurance packages - and they almost always cost more than simply adding a travel package on to your existing insurance. Look on the internet for better deals.
Even if you only travel twice a year, an annual policy will save cash.

Measure #2: Eliminate Redundant Coverage

Think you need personal items covered in your car? Think again. First, they are almost never paid for in claims. Second, if you have home or renters insurance, there is a good chance that all your stuff is covered. Just make sure to keep the receipts.

Unless you are carrying expensive equipment around - which you will need special coverage for - it is cheaper to replace your things out-of-pocket than to pay all those premiums.

Measure #3: Muscle Up Safety and Security Devices

Look to add on extra safety and security features to bring down your premium. Some suggestions are:

* Driving detection systems
* Lo-jack
...
... * Alarm systems
* Airbags
* OnStar
* Black Box

These things often cost some money up front, but the long-term savings are well worth it. Plus, you are actually a lot safer!
In terms of OnStar and Black Box, you can actually use these systems to save insurance money by allowing insurers to collect data on your driving habits. If you drive safety, it will prove you are safer and they will charge you less for coverage!

Measure #4: Drop the Bonus Malus or No Claims Bonus (NCB)

A Bonus Malus, also called a "no claims bonus/discount", is a clause in your insurance agreement that gives you a discount for every year that you do not file a claim. The idea is to reward you for paying them premiums without getting any service back. Basically, it makes you feel better about getting only a sense of security back for your car insurance payments.

However, the principle of this deal doesn't really make any sense. First off, NCBs cost you more in premiums every payment date. While a 50-70% discount for not filing claims is nice, this does nothing to stop your rates from skyrocketing if you do file a claim.
You can save some money on your premiums by removing the Bonus Malus now.

Measure #5: Pay for Small Things Yourself

If you have to make small repairs to your vehicle, the increase in premiums that might follow will likely cost more in the next year or two than simply paying for the repairs out of pocket. Depending on your insurer, you might be required to still make a claim but inform them that you will pay for it. Check with your insurance provider to be certain. Failing to report incidents may void coverage.

Measure #6: Shop Around Regularly

There are times when you should always check car insurance quotes: after accents, after you turn 25, 30, 35, etc., and at the end of every year. Prices tend to fluctuate, so get car insurance quotes yearly.

Car insurance quotes are quick, easy, and effective. Why not? It's totally free!