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9 Ways to Reduce Your Insurance Costs

By WTOP Staff

Insurance cost-cutters

It’s hard to get through life without paying for insurance. In fact, if you have a family, you probably have several insurance bills — for your health, car, home and, of course, your life. You’re always glad you have insurance when you need it, but on the days you don’t, it’s easy to look at the bills and wonder: Why so much? So if you’d like to lower your insurance premiums, here are suggestions to chip away at the cost.

Loyalty pays.

It can be a good idea to switch insurers every once in awhile, but don’t overdo it. “Many companies are now giving you credit for showing loyalty to a previous carrier,” says Angela Nielsen, an agent with North Haven Insurance Group in Connecticut. “If you jump from carrier to carrier every year, companies are rating you in a different tier with less-competitive rates.” Unless you’re facing a drastic rate increase, you’re better off sticking with your carrier and making policy adjustments, she says.

But if you must, shop around.

If staying put isn’t an option for you — your insurance rates skyrocketed, for example — it’s time to shop around. Check insurance-comparison websites like CoverHound.com or ask friends and family for recommendations. Just don’t cancel before you get another policy. Something could happen to your car (or you) when you’re between policies, and some insurers that learn you aren’t covered may deem you irresponsible and charge you more than they would otherwise.

Show insurers you’re safe.

Insurance is all about mitigating risk. So if you lessen the odds of something bad happening to you or your property, insurers often reward your safeguarding. “Smoke alarms, burglar alarms and automatic sprinkler systems in the home can really reduce costs,” says Doug Smith, senior vice president of personal lines at Erie Insurance in Pennsylvania. Car insurance premiums often drop if you take defensive driving, and if you lose weight or give up smoking, you may be able to lower your life insurance premium.

Periodically ask about discounts.

Many discounts won’t be a surprise — you’ve probably heard that auto insurers sometimes lower premiums if your child earns A’s and B’s at school, for instance. Other discounts are more off the radar. Erie Insurance offers homeowners insurance discounts to those 46 and older, Smith says. And some companies give credits to people with bachelor’s or master’s degrees, according to Nielsen.

Consider bundling.

Many companies will lower your premiums if you buy more than one policy from them. So consider getting auto and homeowners insurance from the same firm, for example. But before you bundle, make sure to examine what you’re getting and what you’re leaving behind. If your new carrier lowers your premiums but you no longer have roadside service, that may matter to you.

Tinker with how you pay your monthly premium.

Most insurers will shave a modest amount off your policy (like $5 a month) if you make an annual payment instead of paying monthly. If you can swing it, you could save $60 a year and not have a monthly payment to worry about — for the next 11 months, anyway. Or if you raise your health insurance deductible, you could lower your monthly payment significantly.

Review your insurance with your agent.

You may feel like you’re walking into the lion’s den, but a meeting with your agent may pay off, especially with homeowners insurance. “Review the replacement cost on your home, or any other property you insure, every couple of years,” Nielsen advises. “Most standard market policies have an inflation guard. Your dwelling limit will increase every year to adjust for inflation and cost of labor and construction. While this is a nice feature, after several years, you can end up overinsuring your property.”

Improve your credit.

This is definitely taking the long view, but consider that a lot of insurance companies look at policyholders’ credit reports. They do so to determine whether you’ll be able to keep up with the payments. And if your credit score is low, you may wind up with higher insurance payments. So if you can reduce your debt and keep paying bills on time, you may pay less for insurance in the future.

Don’t go overboard in lowering your costs.

You have insurance for a reason: You want it to pay off if you need to use it. So remember that you get what you pay for, and if you buy insurance that stresses low payments but doesn’t seem to boast anything else, your insurance may not cover your problem due to numerous exclusions in the fine print. In which case, you may end up feeling that the insurance premiums you’ve been paying have been a complete waste of money.

More from U.S. News

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3 Types of Insurance You Need — And 3 You Don’t

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9 Ways to Reduce Your Insurance Costs originally appeared on usnews.com

Don’t Settle for Student Loans to Pay for Online Education

By WTOP Staff
Online college programs are becoming a more popular choice for prospective students, with one study finding that more than 6 million students enrolled in at least one online course in fall 2015. The popularity of these courses can be attributed in part to their flexibility with working adults' schedules, students' ability to progress more quickly through online programs and, oftentimes, cheaper tuition. [See 10 low-cost online bachelor's programs for out-of-state students.]Online degrees can be beneficial to many college students, but some studies have shown online learners complete their programs at lower rates than students at traditional brick-and-mortar campuses. Individuals with student loans but no degree comprise two-thirds of defaulted borrowers. Though these numbers are not encouraging, just like for traditional programs, there are ways to reduce how much you'll need to borrow for an online program to ensure you won't become one of these statistics. Don't just settle on borrowing student loans to cover the whole cost of your program and living expenses. Instead, start thinking about how to cut costs and cover your balance in different ways, such as the following. -- Grants and scholarships: Even though you are taking an online course, you can still apply and receive grants and scholarships. But your first step should be to complete the Free Application for Federal Student Aid, commonly referred to as the FAFSA, which will allow you to receive a Pell Grant if your expected family contribution is low enough. The EFC criteria and award amounts are adjusted annually, but the 2017-2018 academic year awards range from $606 to $5,920, which could significantly lower the amount you borrow annually. Your next step is to apply for scholarships. You can start by checking online scholarship search engines, such as the Salt Scholarship Search, College Board's BigFuture and Peterson's. But don't forget to take advantage of local organizations and your school's financial aid office. Both may offer scholarships that you can't find with a national scholarship search. [Review these 10 sites to kick off your scholarship search.]For instance, organizations like the Elks Club, Knights of Columbus or the Rotary Club typically offer scholarships annually to local students. Just because you're going to school online doesn't mean you're ineligible. Visit your local library for scholarship listings, and ask around town. You might be surprised how many local organizations offer scholarships. While these scholarships typically aren't large, every little bit counts. Each dollar you receive in a scholarship is a dollar you don't have to borrow and pay interest on. -- Work-study: Another option for online students may be work-study awards. Not all students enrolled in online programs are eligible, but students at some schools -- including, for example, SUNY Empire State College and Liberty University -- are. Work-study awards are not given upfront like scholarships and grants. In most cases, they are an offer to earn up to the awarded amount if you secure an eligible work-study job. While there is a misconception that all work-study jobs must be on campus, students can work for off-campus, nonprofit or public employers as long as the work is in the public's interest. You may be able to work for a for-profit employer if the job is relevant to your course of study. No matter who the outside employer is, it will need to have an established agreement with your college for you to receive work-study funds. Remember, to be eligible for federal financial aid, you must be enrolled and pursuing a degree or certificate. If you're not working toward a credential, Pell Grants and work-study won't be option, but you may still be able to take advantage of private scholarships -- just be sure to read the eligibility criteria carefully. [Explore what to know about financial aid in online programs.]-- Pay as you go: One of the great benefits to enrolling online is the flexible schedule, which can allow you to complete your college coursework around your responsibilities. But prospective students often overlook using their part- or full-time job earnings as an option for paying for college. Almost 80 percent of college students in 2015 worked at least part time while attending classes, according to the National Center for Education Statistics. By budgeting and thinking strategically about your college costs, you can likely reduce your dependence on student loans by paying a portion out of pocket. Many -- but not all -- online programs are less expensive than traditional programs and often have shorter payment periods. Six, eight or 10 weeks are common course durations. Because of the frequency of payments in an online setting, you may be well-placed to pay as you go and possibly avoid borrowing altogether. Attending college online and avoiding student loans may be challenging, but if you are willing to put in the effort, you can limit the amount you need to borrow. More from U.S. News Q&A: Understanding Student Loan Discharge Eligibility Student Loan Refinancing Isn't Right for All Borrowers
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