Save money without risk: Insurance costs can often be reduced without having to forego the necessary protection – only small adjustments are necessary.
Whether it's household contents, motor vehicles or liability insurance – insurance can be quite expensive. What many people don't know, however, is that in many places you can still save a euro or two without having to forego important protection. We'll show you how to optimize your insurance costs while still being effectively protected.
1. Cancel Excess Policies
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You can save a lot of money on insurance. (Symbolic image)
© Angel Santana Garcia/Imago
A first step to saving money on insurance is to identify redundant policies and cancel them promptly. Often, over the years, insurance policies accumulate that are no longer relevant or overlap. By thoroughly reviewing your policies, you can avoid unnecessary expenses. According to theconsumer advice centre, some insurances are unnecessary anyway – especially those that cover minor damages, such as glasses or luggage insurance. So you can save yourself such policies from the outset.
2. Annual payment instead of monthly contributions
A particularly simple method to reduce costs is to change the payment cycle. Many insurance companies offer discounts for annual payments, which can provide significant savings in the long run. Especially when it comes to car insurance, it is usually cheaper to pay your premiums annually instead of monthly.
The motor vehicle tax is also due every year. In order to be able to better plan the expenses for the car, the vehicle tax can be calculated yourself in advance.
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3. Increase deductible, lower premiums
One way to reduce monthly premiums is to increase the deductible. By being willing to pay a higher amount in the event of a claim, insurance costs can be significantly reduced. This is particularly relevant for motor vehicle insurance or personal liability. However, the deductible also makes sense for a completely different reason, as Julia Alice Böhne from the consumer protection organization Bund der Versicherungen explains to the German Press Agency: "It protects against the insurer terminating the insurance contract in a minor case, since the insurance is only used in the event of really existential damages."
Saving tips in everyday life: How to minimize your expenses when shopping or at home
Saving tips in everyday life: How to minimize your expenses when shopping or at home
4. Adapt benefits to your current life situation
Adapting insurance benefits to the current life situation is crucial. Insured persons should regularly check whether the amounts insured and benefits still meet their respective needs. Lifestyle changes, career developments, or family changes may require insurance policy adjustments. For example, money can be saved if a family member moves out and private liability insurance can be switched from the family tariff to a single tariff.
A regular review and adjustment of insurance policies therefore helps to save money and still be adequately protected. You can also save a lot of money in other areas, be it on the car or on subscriptions.
The editor wrote this article and then used an AI language model to optimize at her own discretion. All information has been carefully verified. Learn more about our AI principles here.
Category list image: © Angel Santana Garcia/Imago