Health Costs

Posted by MoneySavvy on Jun 18th, 2010 | no comments home title

How do you save on health coverage? The truth is, it’s not that hard. Here are three of the best tips:

1) Use third party “broker” sites

This is probably the most effective strategy of all. If you go to individual company websites, you will end up filing out the same exact form five to ten times. Then you will only get the same number of quotes as the number of forms you filled out.

However, if you use quote sites, you just fill out one form and then get all the quotes for the companies in your area. This helps you narrow down the companies much faster. You might want to use at least two or three of these broker sites, just to make sure all the companies in your area have quoted. If you miss one or two companies, you might miss out on the best prices.

2) Only get the coverage you need

A lot of people end up spending more than they have to simply because they did not read the small print before signing. The truth is, you should get as high as deductible as you can safely afford. This is one of the best ways to lower your monthly premiums.

How much can you afford for the deductible? To know this, just evaluate how much you have in savings for emergencies. Use that amount. For instance, if you have $1000 saved up, that should be your deductible. The higher the deductible, the less you will pay per month.

However, make sure it’s not too high, or getting insurance might not be worth it at all. Some people just get the highest deductible possible without thinking about whether they can really afford it. Then when it comes time to file their claim, they realize they cannot cover the up-front costs, and can’t get the money they need. This is how bankruptcies are filed.

3) Cut out unhealthy habits

It’s no secret that companies charge more for smokers and drinkers. Therefore, giving up these habits means you will pay less.

How do you pick the best company? Once you’ve narrowed it down to the cheapest three companies after getting a quote, then read reviews. There are tons of consumer reviews online, so finding them is not hard. Also make sure the company is on solid ground financially. If they are not, they will not be able to pay your bills.

Once you’ve made your selection, then get the highest deductible possible. Also, be sure the policy does not include more coverage than you really need. Sometimes unnecessary coverage is included that raises the price, and most people do not catch it because they failed to read the small print.

Use these tips, and you could save a lot of money on your next policy.