One area that can “make or break” your personal finances is insurance. Having the right kind and enough of it (at a reasonable price) is important. Here are some tips to help you cover yourself and save money in 2012.
1. Buy a book on insurance. We recommend Insurance for Dummies. Learn the common terms, pitfalls and wisdom you’ll need for the confidence and knowledge required to maximize this essential financial product.
2. If you don’t have renter’s insurance, get it. Often for the price of one large pizza a month, you can protect your personal property from fire, theft and storm damage. Understand that your possessions are not covered under your landlord’s policy.
3. Review your deductibles. If you currently have no deductible on your auto insurance policy, and have managed to save a small emergency fund, you may want to consider negotiating a new rate with a deductible. This could save you hundreds of dollars each year. Do the same with other policies. If you do not have an emergency fund, you will need to maintain higher cost, no or low deductible plans.
4. Shop around. Write down the renewal dates on your policies, find a local insurance broker and have them shop policies for you. By comparing prices and adjusting coverage to your needs, you could achieve significant savings. That’s more money to throw against your debt.
Visit www.inCharge.org for more information.
