While paying for insurance premiums may seem like a hassle, or even a waste of money at times, rest assured, having adequate, accurate insurance can make the difference between staying afloat or financial ruin.
“No matter if you are talking about insurance for your home, car or your life (including health and disability) having proper insurance coverage is an essential part of responsible money management. Life events happen, completely beyond your control. You can control the amount of financial damage by having the right insurance policy in place at the right time,” says Jeff Schwartz, executive director, Consolidated Credit Counseling Services of Canada.
“There are a lot of cost savings to be had for consumers seeking insurance. You can shop around or seek out discounts for bundled services. When it comes to car insurance and home insurance, there are actions you can take to reduce your premiums, says Schwartz”
Chances are if you are a homeowner, you have homeowner’s insurance, because most mortgage lenders require coverage as a condition for the borrower. Did you know that there are several things you can do as a homeowner to reduce those insurance premiums? If you have oil heating or a wood stove, you may want to swap those in for gas. Make sure that your electrical wiring and piping is up-to-date, because older systems can be fire or water damage hazards, hiking your premiums.
As a renter, many people forgo insurance, but tenant’s insurance is a must. Not only do your belongings get covered in the event of theft or fire, it protects you from liability, which could be hugely expensive. Did you know that as a tenant, you can be financially responsible for any damage or harm that you might inflict on other units in your building, whether on purpose or by accident?
It’s the law to have car insurance, but that’s not the only compelling reason for auto coverage. If you get caught without insurance, it is considered a serious criminal offence and you could lose your driver’s licence. If you get involved in an accident and you end up seriously injuring someone, you could be on the hook for their medical expenses and court fees (if they decide to take you to court). However if you had insurance, you would be covered for such unfortunate events. According to the Insurance Research Council, the average auto claim for property damage (USD) is $3,073 and $14,653 for bodily injury. When you factor in additional costs, like towing and ticketing, it makes those car insurance premiums seem a lot more affordable, not to mention smart spending.
You can reduce premiums by driving safely and driving less often. There are loads of other discounts available too, depending on your age, where you live and the kind of car you drive.
Make sure you fully understand what’s covered through your health insurance at work. The last thing you want to be saddled with in a health emergency is crippling debt taking you by surprise. It might be worthwhile topping up your coverage if it’s not adequate. The same goes for disability insurance. You want to make sure that your income will be protected in the event that you can’t work.
Life insurance is a good idea to protect your loved ones from financial burden should something happen to you. It’s worth checking out and seeing if the premiums fit in your budget.
Have you experienced a life event that has left you with bills to pay? Are you struggling to make ends meet because your debt load is substantial? We can help get your life back on track. Contact one of our trained credit counsellors at or visit our free online debt analysis.