Question 1: Have you rate-shopped your car or homeowners/ renters insurance within the last 12 months?
Question 2: Did you make any changes to your benefits during the last open enrollment period at work?
If you answered "no" to either of these questions, you may be losing out on good insurance deals! It’s tough to work up the motivation to do something about insurance* - especially with more interesting things begging for your attention. With literally thousands of panda videos on YouTube, you’re hardly to blame for putting off insurance decisions. But a couple easy actions could save you money and make sure you’re protected. Here are some insurance money saving tips:
Shop around your car and homeowners/renters insurance at least once a year. These are very competitive markets, which often means good pricing deals are out there. Several factors go into rating you for insurance, so something may have changed in your favor over the past year (your credit score, for example). For car insurance, you could save up to $300-$500 per year by switching
If you’re a renter, get renters insurance! Most homeowners have insurance, but only about 3 in 10 renters have insurance. Renters insurance is relatively cheap, costing on average around $15/month. It protects you against the loss or damage of your belongings. It even covers you for liability if a guest is injured in your home. Seriously, if you’re a renter, get this now.
During your company’s next open enrollment period, review your benefits coverage. Make sure you’re taking advantage of any ‘freebies’ (like wellness incentives for your health insurance) and review your coverage if you’ve had a major life event (like a new baby or a home purchase). Remember that insurance through work is almost always cheaper than insurance you buy on your own – so take advantage.
What’s up with that? The scientific explanation for the PolicyGeniuses
Behavioral economists and cognitive psychologists call this status quo bias. People are generally averse to change and sometimes will stay in losing situations to avoid change. Our irrational preference for how things are right now leads to all kinds of behaviors that could hit our wallet: procrastination, lazily going with the default option, and failing to review and change decisions after we’ve made them. Now you know!
Do you have any tips or tricks to motivate yourself to do tedious financial tasks? We'd love to hear about them in the comments or email us at firstname.lastname@example.org