How Best To Save Money On Insurance Policies In Nigeria

How Best To Save Money On Insurance Policies In Nigeria

Humans are naturally economical. Not minding the kind of insurance policy, humans are always looking at how to save money by getting the deal at the cheapest possible price. It is in that regards that we want to explore how you can save money on insurance policies in Nigeria.

Related: whole life insurance terms you should know

Insurance is pretty much the same everywhere in the world, so it doesn’t matter if you live in Australia or Africa; the tips I am going to reveal today is useful for any market, anywhere in the world.

These tips will guide you on how best you can save money on insurance policies in Nigeria.

Insurance is not only designed for business; it’s also designed for personal property and even for life assurance. It involves paying a company some money to provide protection for your business against catastrophic events that may lead to losses.

Tips On How To Save Money On Insurance Policies In Nigeria

  1. Have just the right amount of insurance that you need

If you want to save money on insurance policies, you have to only buy insurance policies to cover the aspect of your life you need coverage on. Desist from giving the insurance company premiums for coverage you don’t need and compensations you would never get.

Also Read: Top 9 car insurance tips

Always perform your risk assessment to ascertain the aspects you are more at risk and need protection. That will aid you in choosing only the insurance products you really need.

For instance, if you wish to purchase a car insurance, you need to make the following considerations to ascertain if you really need it: things that may go wrong based on previous experiences, intended usage of the vehicle and general information. Do well to ask yourself the following questions:

  • Is my car prone to damages?
  • Are the roads I would be plying good and safe?
  • How often do people have accidents on these roads?
  • What are the common problems that occur when similar vehicles get involved in accidents?
  • Is there a total write-off or is the vehicle strong enough to withstand some hits?
  1. Self-Insurance

You can also save money on insurance policies by having self-insurance. Self-insurance involves setting aside some amount of money periodically to cover for damages or losses when they happen. If you can be disciplined enough to self-insure yourself, the chances are high that you will maintain your life and property pretty well and may not need an insurance policy.

  1. Review your coverage

After purchase, you must continue to review your insurance policy on a periodic basis and strike out things that you do not need while you include policies that you actually need. This will help you get rid of unnecessary spending on insurance.  It will also ensure you maximize the package by paying only for the things you need and save money on insurance policies.

  1. Avoid Duplication

Duplication occurs when you buy two different insurance policies that provide the same coverage. For instance, you don’t need to pay for extended warranties if your credit card doubles the warranties on your purchased items.

You always need to cross check the policies you have already and the protection you have for patronizing a particular idea like the credit card. Some of them may just offer some protection that you don’t need an insurance policy for again, e.g. warranty and the rest. This way, you can save money on insurance policies.

  1. Consolidate your policies

When buying insurance coverage, you must be extremely careful in order to avoid over-coverage or under-coverage. While under-coverage is risky because it would be insufficient when losses occur, over coverage would increase your expenses on items that you do not need.

Instead of buying separate policies for different items, you should consider buying umbrella coverage. Umbrella coverage would contain a little bit of everything and help you to reduce costs of insurance significantly.

  1. Easy on the claims

If you file claims all the time for little things, insurance companies would find ways to increase your insurance rates. You don’t necessarily file claims for the smallest things such as a scratch on your vehicle or flat tire, but for huge losses like car theft, burn etc. do document your claims properly to ease payment.

  1. Compare Prices

Before purchasing any insurance product do well to ask for quotes from different insurance agents and companies and compare them to ensure that you commit to the right one in terms of price. Comparison helps you save money on insurance policies. However, it may not be that wise to settle for the policy with the cheapest rate because it may not contain the best package. Go for the policy that gives extensive coverage at reasonable prices is always my advice.

  1. Increase your deductibles

Deductibles are the amount you would contribute in paying for losses when they occur and your company is not able to cover for them fully. It helps you save money on insurance policies. It’s good that you increase your deductibles because low insurance deductibles translate to higher premiums and vice versa.

  1. Ask for Discounts

Insurance companies’ offer lots of discounts to encourage buyers but a lot of people are either unaware or forget to take advantage of these discounts. Some insurance companies would not offer discounts but would give it out upon requests. So next time you want to buy insurance policies, make sure you ask for discounts from your insurance agent or broker.

  1. Maintain a clean credit record

If you maintain a bad credit history, your insurance company is bound to charge you higher premium rates. This acts as a caution on the side of the company and is fair in business. If you want to get some low premium rate, do well to keep your credit record clean.

  1. Talk to the right agent

Some insurance agents are only interested in meeting their sales targets and getting their commission. These type of insurance agents deceive naïve insurance buyers; convincing them to buy some ‘add-ons’ that are not needed by the policy buyer.This plunges the insurance buyer into an unnecessary spiral of expenditure. To lower your cost of getting an insurance, you need to get the right agent if you have to use one. To get the right one, you have to carry out extensive research and also ask those who have been purchasing in insurance policies for a while for guidance.