71
Chapter 4: Cutting Spending and Boosting Income
Book I
Taking
Charge
of Your
Finances
Drug discount cards tend to be bad deals, in part because they have so
many restrictions. For example, you may not be able to use your card to buy
generic drugs or buy drugs online, or you may be able to use it only at cer-
tain pharmacies.
Inching down your insurance costs
Maintaining your insurance coverage is essential even when you need to cut
back. Without it, a serious illness, a car accident, or flood or wind damage to
your home could be financially devastating and push you into bankruptcy.
Shop around for the best deal on your insurance. An insurance broker
can help, or you can explore your options by using a Web site like
www·insure·com
. For example, you may be able to get less-expensive
coverage by switching to another provider, by raising your deductibles (the
amount of money you have to pay out of pocket before your insurance com-
pany starts to pay) on your current policies, or by getting rid of any insur-
ance bells and whistles you don't need.
Also make sure you're getting all the insurance discounts you're entitled to.
For example, you may be entitled to a discount if you don't commute to work
in your car, if you take a class to refresh your driving skills and knowledge,
if you purchase your home and auto insurance from the same company, if
you're over 65, if you install certain safety features in your home, and so on.
Homeowner's insurance
Following are specific tips for reducing your home insurance costs:
When you insure your home, don't count the value of the land your
home sits on. Insure the structure only.
Find out if you'll save money by installing deadbolt locks and smoke
detectors. If your home already has a security system, make sure it's
reflected in your policy.
If someone in your family was a smoker but has kicked the habit,
find out if your insurance company will lower your premium costs.
Households with smokers often pay a premium for insurance because
burning cigarettes are a leading cause of house fires.
Auto insurance
Consider the following ways you may trim your auto insurance bill:
If your vehicle is old and not worth very much, drop your collision cov-
erage, especially if you're spending more on the coverage than your car
is worth. Another option is to increase the deductible amounts for your
collision and comprehensive coverage.
