Finance: Many Pay Too Much: 7 Ways to Save on Insurance
Monthly insurance premiums can be expensive. Often, however, there is great savings potential. We reveal seven tips that consumers should know.
Consumer prices have risen. You notice it especially in the supermarket or at the gas station. The question arises: Can money be saved elsewhere instead? Yes, for example with insurance companies. If you follow a few tricks, you will drive cheaper.
Method 1: Pay annually
You can save on insurance with just one simple step. “For example, with car insurance, it’s usually cheaper if you pay your premium once a year instead of monthly,” says Julia Alice Böhne of the Hamburg-based consumer protection organization Bund der Versicherte. The same generally applies to all other insurance companies.
The background: Fewer payment dates mean lower administration and personnel costs for the provider. “Then they pass these savings on to consumers in the form of discounts,” says Böhne.
Method 2: Adjust Rates
Insurance contracts should always reflect the current life situation as far as possible. “For example, after family members have moved, premiums are saved if you switch private liability insurance from a family rate to an individual rate,” explains Elke Weidenbach of the NRW consumer advice center in Düsseldorf. .
OR: Spouses and registered life partners only need household contents insurance after moving into the shared apartment. “And even with personal liability insurance, a joint contract is enough,” says Böhne. Therefore, it pays to select insurance contracts and take a close look at each individual policy.
Method 3: cancel superfluous contracts
Particularly plausible: Not taking out superfluous policies in the first place or canceling them as soon as possible. From the point of view of the Federation of Insured Persons, said expendable insurance includes mobile, glasses or luggage. “They generally have a poor range of services, but they are comparatively expensive,” explains Böhne.
Method 4: Deductible
The insurance premium can also be partially reduced by agreeing to a deductible. This is possible, for example, in private civil liability or all-risk motor vehicle insurance. What speaks of a deductible? “It protects against the insurer’s termination of the insurance contract in a minor case, since the insurance is only claimed for truly existential damage,” says Böhne.
Method 5: Use bundle deals
Many insurers lure them in with so-called benefit packages: they offer discounts to consumers if they take out multiple policies with them at the same time. “One insurer, for example, offers a package discount on insurance policy premiums of up to 15 percent,” explains Böhne.
But even if the offers seem attractive at first glance, you should always review them carefully and only conclude if they are not only cheap, but also offer protection that is tailored to your individual needs.
Consumer advocate Weidenbach points out that insurers that offer different contracts are not the best insurers in all areas. “If insurance companies have very good terms in one area, it doesn’t automatically apply to others,” says Weidenbach.
Method 6: Check Premium Plans Closely
Don’t conclude any so-called premium rates without a thorough examination: “Included services may exceed actual need, and need-based insurance coverage can also be purchased more cheaply,” says Böhne.
The comparisons on Stiftung Warentest help in the search for good and cheap insurance. It may also be advantageous to seek personal advice at one of the consumer advice centres.
Method 7: Check contracts regularly
“In the property and liability insurance industry, contracts shouldn’t be left dormant in folders for years,” advises consumer advocate Weidenbach. It’s best to check contracts at regular intervals. It’s been years and it’s been cheaper and in better conditions for a long time now.”
However, when examining insurance contracts, the focus should not be on the amount of the premium, but on the insured benefits, says Böhne. In the event of damage, it is ultimately crucial that the insurance contract offers sufficient protection, “and not that it is the cheapest”.