Beating Broke

Personal Finance from the Broke Perspective

10 Insider Tips to Score the Best Insurance Even If You Have Bad Credit

By Leave a Comment

Finding good insurance with bad credit
Image Source: Pexels

If you have bad credit and are looking for cheap insurance, it’s still possible to get a good rate. According to The Zebra’s customer auto insurance data, drivers with scores between 300 and 579 pay around $126 more per month than those with very good credit scores between 740 and 799. According to Bankrate, the same is true for home insurance. People with bad credit pay 93% more than those with excellent credit. This is due to the fact that insurance companies consider a lower credit score a higher risk factor, meaning that people with a lower score are typically more expensive to insure. Don’t overpay for your insurance. Follow these 10 tips to get the best insurance possible.

1. Shop Around

When you get quotes from insurance companies, they pull a soft credit inquiry. This means that getting multiple quotes won’t affect your credit score. Don’t settle for an expensive plan. Instead, see what’s available in your area.

2. Choose The Right Company

Choosing the right insurance company if you have bad credit
Image Source: Pexels

Choosing the right insurance company is the best way to save money if you have bad credit. You should look for a telematics-based company that tracks your driving habits, mileage, and records to determine your rate. Several companies are better for individuals with bad credit including Geico, Nationwide, and USAA. This may vary based on your location, age, and driving record though. Companies like First Acceptance Auto Insurance or Dairyland are best for drivers who have tickets or accidents.

3. Look for Discounts

If bad credit is driving up the cost of your premium, you can look for discounts in other ways. For auto insurance, many companies offer a safe driver discount. You also can bundle your home and auto insurance for a discount.

4. Be Careful with Claims

Get a quote for repairs before submitting an insurance claim if you have bad credit
Image Source: Pexels

Don’t file a claim for your insurance unless the damages are more than the insurance rate increase you will get in return. Make sure to get a quote for repairs and then do the math. Sometimes you save money by paying out-of-pocket.

5. Exceptions to The Rule

Some states don’t allow insurance companies to do credit checks. If you live in California, Hawaii, Michigan, Nevada, Oregon, Utah, or Massachusetts, your credit score won’t affect your insurance premiums. This may be expanded in the future since lawmakers in many states don’t believe that insurance should be tied to credit scores. Doing so disproportionally harms consumers.

6. Improve Other Risk Factors

home security system improve your risk factor
Image Source: Pexels

For home insurance, you can get additional discounts for installing safety measures like smoke alarms and security systems. For auto insurance, if you have a new driver on your plan or someone with a history of accidents or tickets your policy will be more expensive. Improving your other risk factors will help you get a better rate.

7. Improve Your Credit Score

This may go without saying, but improving your credit score can help you get cheaper insurance. Focus on making on-time payments, utilizing less of your available credit, and avoiding hard credit checks to boost your score. Also, take a look at your credit report for any errors that might be bringing your score down. While a score increase won’t happen overnight, positive actions will help your score increase over time.

8. Reevaluate After a Period of Time

Most insurance companies will offer loyalty discounts after a certain amount of time with no claims. Check in with your insurance company before renewing your policy to see if you qualify. Even if you pay more for insurance within the first year, subsequent years may be cheaper.

9. Check What’s Covered

When you’re shopping for insurance, see what the plans offered actually cover. There are some things you may not need. Of course, if your car or home is financed insurance coverage may be dictated by your lender. If not, you could save money by reducing or eliminating some unnecessary coverage.

10. Choose How You Pay

There are usually small discounts for electronic billing and autopay. Additionally, most companies will offer a discount if you pay for your annual premium upfront. While these savings might be small, they can help you save on insurance costs even with bad credit.

Finding Good Insurance with Bad Credit

You can still find good insurance with bad credit. While you may pay a bit more for your policy, by using these 10 tips you can still get an affordable rate. Don’t settle for the first quote that you get and make sure that you take advantage of all the discounts available to you.

Read More

Is Dental Insurance Worth It? The Surprising Truth You Need to Hear Before Your Next Dentist Visit

By Leave a Comment

Is dental insurance worth it?
Image Source: Pexels

While health insurance is essential, is dental insurance really worth it? This really depends on your dental health and how much you want to spend. For someone who doesn’t go to the dentist often, paying for an insurance plan might feel like a waste. But, if you have a more complicated dental history, you may need the coverage. Here we’ll discuss questions to consider to see if dental insurance is right for you.

What Does It Cover?

What does dental insurance cover?
Image Source: Pexels

Preventative care is usually fully covered including annual exams, x-rays, and cleanings. Some dental procedures aren’t covered. Be aware that there are also annual maximum limits with most plans as well. Most plans have a 100-80-50 coverage structure depending on the procedure. For example, cleanings could be covered at 100%, 80% could be covered for fillings, and 50% could be covered for crowns. Waiting periods may also apply for certain dental care, so you may have to wait up to six months to use your insurance for things like root canals. Plans for individuals and families also tend to cover things differently.  Ultimately, be sure to read the fine print before signing up for dental insurance to make sure it fits your needs.

How Often Do You Go to The Dentist?

If you have healthy teeth, you may not need dental insurance. For example, if you only get an annual exam and cleaning, you may not require insurance. However, if you require additional dental work like crowns, dentures, or fillings you may need insurance to help cover these costs. Consider your risk factors by taking account of preexisting conditions that may reduce your oral health like cancer, diabetes, or cardiovascular disease, your diet, tobacco use, and alcohol consumption. If you are at a higher risk, it may be smart to carry dental insurance.

Does It Save You Money?

Getting x-rays at the dentist
Image Source: Pexels

You’ll have to do the math depending on the cost of your plan and what your dentist charges for visits. For example, if you visit the dentist twice a year for $500, but your premium is $600 then you’re wasting your money. However, if your employer offers a low-cost plan and you’re only paying $20 a month then having dental insurance makes sense.

Consider Alternatives to Dental Insurance

Dental discount plans save you money on everything, regardless of the procedure. There are no exclusions, maximums, or waiting periods for savings plans. There’s usually a fixed flat discount for all the care you receive. So, you’ll save money on every dental visit. Ask your dentist if they accept dental savings plans before signing up for one.

Dental payment plans are another option for paying for your services. Most dental offices will allow you to set up a payment plan for major work that may be expensive. The same is true for oral surgeons or orthodontists if you need dental implants or braces.

A Health Savings Account (HSA) or Flexible Spending Account (FSA) can also help you save money on dental care. With an FSA, pre-tax dollars can be set aside from your paycheck to cover health-related expenses including dental care. Both can also work in tandem with dental insurance.

Making a Decision about Dental Insurance

Contrary to popular belief, dental insurance is not necessary for everyone. Consider if it would make sense for you and your family before paying more for a policy that you underutilized. If your family is just going in for their routine cleanings and exams, it’s not likely that you need this type of coverage. At the end of the day, the decision is yours. You should always do what works best for your situation.

Do you have dental insurance? What has been your experience with this type of coverage?

Read More

Tips to Find Cheap Home Insurance

By Leave a Comment

Finding cheap home insurance
Image Source: Pexels

Home insurance is essential to protect your investment against unforeseen disasters and losses. Of course, it’s not something you want to skimp on. But are you paying too much for your home insurance policy? Navigating the home insurance market can be difficult without proper guidance. There are many affordable ways to lower your rate without sacrificing coverage. Here we’ll help you explore ways to find cheap home insurance with appropriate coverage.

1. Bundle to Save

Bundling your insurance policies can help you get cheap home insurance. If you have a car, boat, ATV, or vacation home, those policies can be bundled. According to Progressive, customers can save an average of 7% on their auto policy when they bundle home and auto insurance. New customers can save over 20% on average. 

2. Don’t Ignore Discounts

Home insurance discount for first time homeowners
Image Source: Pexels

Insurance companies offer discounts for many things that you may not even think of. Are you retired? You may qualify for a discount. Other discounts may be given for home improvements, being mortgage-free, or not having any recent claims. Additional discounts will usually be given for paying for the policy in full versus monthly. Other things to ask your insurance agent about include discounts for living in a gated community, having an HOA, being a non-smoker, or being a new homeowner. These small discounts can add up quickly helping you to get cheap home insurance.

3. Add a Home Security System

Typically, if you have a home security system installed, you can receive home insurance policy discounts. The amount of the discount can vary by insurance company, but some can offer up to 10% off. Other prevention measures that could get you a discount are smoke detectors and fire alarms. If you have leak alarms, make sure to disclose that as well, as it could get you additional savings.

4. Stick with One Company

With most insurance companies, the longer you have a policy with them the more loyalty discounts they will offer. If you haven’t received a rate reduction and you have been a policyholder for over a year, try and call your insurance company and see if they will lower your rate. Sometimes bringing up switching companies can also work in your favor. Ultimately, they don’t want to lose your business.

5. Determine What You Need

Being underinsured can have catastrophic consequences. But being overinsured could cost you thousands of dollars a year. First, make sure that you have enough dwelling coverage so that you can rebuild your home if needed. Make sure enough dwelling coverage is extended to any other structures like detached garages, sheds, or barns in this number.  Next, make sure that enough is allocated for your personal property and you can revise the personal property limit up or down accordingly. You should also take a look at personal liability limits within your policy. Lastly, make sure that your loss of use coverage is appropriate if you need to rent another place to live in your area. You may also want to include flood insurance or earthquake insurance depending on where you live.

6. Shop Around

Home insurance agent helping find cheap home insurance
Image Source: Pexels

Don’t commit too early to a home insurance policy before weighing your options. You can use online comparison websites to find the best rates in your area. Additionally, you also can reach out to independent insurance agents that work with multiple insurance so they can offer you several rates. However, independent insurance agents are harder to come by so this may not be an option in your area.

Finding Cheap Home Insurance

Finding the most affordable home insurance will take some research. But by asking the right questions, utilizing discounts, and bundling other insurance policies, you can find cheap home insurance. There’s no reason to overpay if you can find a reasonable policy with appropriate coverage. Do you think you are paying too much for your home insurance policy? Let us know your thoughts in the comments.

Read More