Saving money is just smart. Even if you had all the money you could ever want, you wouldn’t want to just throw it away, would you? With the job market the way it is now, many people are cutting expenses just to make ends meet. Unfortunately many of us miss a great opportunity to save a lot of money. When we examine what we spend each month, most of us see the fixed expenses as unchangeable so we skip to optional expenses asn a way to save. We put off that kitchen remodel, the new car, and cut back on our entertainment expenses. But there’s a better way. Take a step back and go look at those supposedly fixed expenses. If you can change some of those, not only will you save money without giving anything up, but you’ll save money month after month.

Insurance is one of the best places to start. There’s a significant difference in the price of insurance from one company to the next. This means that comparison shopping can be well worth the time you invest. Most people pick their insurance companies by accident. They use the same car insurance company that their parents had when they started driving. Their Realtor suggests a homeowners insurance company. People actually buy pet insurance at the grocery store and travel insurance from the airlines. If you’ve never compared prices and coverages, you need to do it now. Yes, it takes time and effort, but it’s well worth it.

As long as you’re going to learn how insurance works and take the time to do this, you might as well review of all of your insurance policies at the same time. You’re looking to decrease the overall cost of insurance, so you need a comprehensive plan.

First, gather together all of your existing insurance policies. If you drive any kind of motor vehicle – cars, RVs or motorcycles – you probably have an auto insurance policy. You probably have insurance on your home and/or your belongings in the form of homeowner’s or renter’s insurance. Health insurance is worth looking at too, whether it’s provided by your employer or you’re getting it on your own. Now write down any types of insurance that you don’t currently carry. Many people who don’t own their home believe that their belongings are covered by the landlord’s fire insurance. That’s not true. Renter’s insurance covers this type of loss. Do you have pet health insurance to covere the vet bills? What about an umbrella policy? The point of saving money is not to go shopping for additional items, but you should know what is and isn’t covered. Only by looking at everything can you make an insurance plan for yourself and shop for the best overall price.

Review your current policies for coverage and limits, and make any necessary updates. Would your homeowner’s insurance cover the current replacement value of your home? Could you drop full coverage on a motorcycle or car that has been paid off? You’ll want to compare prices on the same coverage, and to do that you’ll need to know what you want before you start.

Get at least three quotes for each major type of coverage. If you see a big price difference between companies, get another quote or two. It’s easy enough to get more quotes online now that you have all your information gathered together.

Now it’s time to make your choices. Choosing the lowest price for each type of insurance is not necessarily the way to go. You need a comprehensive plan. Start with the most expensive insurance, which is probably the car and/or motorcycle insurance. If the company offering the best price is a reputable company, that’s probably your best bet.

Now move on to the next most expensive policy. Some insurance companies offer multiple policy discounts, so take that into consideration when you’re comparing prices. Some types of insurance, like pet insurance, usually aren’t offered by the same companies that offer auto, home and motorcycle insurance. In that case multiple policy discounts aren’t an option.

When you’ve gone through this process with every type of insurance you want, add up the annual premiums. Compare that number with what you’re paying now. The new amount should be lower unless you’ve added coverage. You may be able to get better coverage than you have now for a lower overall cost. Although this process takes some time and effort on your part, you will save money each month, not just once.

Author Bio: Written by Coleen Smith Motorcycle Insurance Comparison VIP Pet Insurance Flynds Blog

Category: Finances
Keywords: budgeting, household budget, saving money