Insurance can be expensive but it is something that most of us have. Some insurance is compulsory such as having buildings and life insurance when you have a mortgage or have car insurance if you drive. However, there are insurances that are options such as medical insurance or pet insurance. However, there is one thing that all these every different insurances have in common and that is that they can be expensive. There are often a few ways to get the cost down though.
Cutting insurance costs
To start with you want to make sure that the risks to the insurer are not that high. This could mean that you will need to fit a house alarm, a steering wheel lock or stay fit and healthy. You will also find that if you do not make claims on your insurance, this will help the price as well.
Another sensible thing to do is to compare insurers. There are lots of different insurers and they will all vary in price. If you compare them you will find that some are cheaper than others. You will need to be careful to make sure that you are comparing like for like and that you will be getting the same service form the two that you are comparing. If you are sticking with the same insurer, you can often call them up when it is time to renew and try to negotiate the price down a bit. It is annoying that you have to do this, but it can make a big difference.
Another big way that you can sometimes reduce the cost is if you pay yearly rather than monthly. This means that you have to come up with a limp sum of money and this can be tricky. But if you do this, then you will pay less as monthly payments usually have interest charged on them. You will need to think about how you are going to manage this. If you have savings, then it is likely that the interest on those will be so low, that it will be worthwhile using them to pay for the yearly premium. However, if you do not, then it could be that the only way you will be able to afford the insurance is to get a loan.
Using loans to pay for insurance
The main problem with using a loan to pay for insurance is the cost. All loans will cost money and you will need to calculate whether you feel that it is worth this cost. It is well worth doing the maths and working out whether it will cheaper to get a loan or whether you would be better off just making the monthly repayments. Of course, loans differ in price massively and so you will need to search for the cheapest loan and compare that.
You will need to check that the loan will be available to you though. The cheapest loans tend to only be available to people with a good credit rating. If you have a poor credit record then you may struggle to get such a good loan. However, there are bad credit loan which you might be able to use instead. It can be worth investigating these to see whether they can help. This do tend to be dearer, but they might still be cheaper than the monthly insurance; it is always worth doing the maths.
You should check though, that you will be able to repay the loan. If you miss a repayment or are late, they will be extra fees or charges and this will mean that you may end up paying more after all. So make sure that you find out how much you will be expected to pay and when you need to pay it and then you will be able to work out whether you will be able to cope with this. You should be able to work this out by looking at your past bank account statements. See whether you would normally be able to afford this sort of thing. If you cannot, then do not despair as you may be able to make some adjustments to make it easier. You might be able to reduce your spending in some areas, or you might be able to earn some more money. If you can do either of these or both then you may just have enough to cope. Do remember that as well as repaying the loan you will have to manage to pay for everything else you need as well at that time. So, you need to allow for this money as well. It will take a lot of working out, but it will be worth it as you will be sure that if you do take on a loan that it will work out well for you and be financially sound.