Jan 6, 2023
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Inflation has increased the cost of essentials, and insurance premiums are not exempt from this reality. That means the chances that you’re wasting money every month on your insurance are high.
According to ValuePenguin, as of February 2023 the average cost of home insurance is around $1,516 per year and full-coverage car insurance costs around $1,780.
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While factors such as where you live, the extent of the coverage you purchase and your credit history impact the cost, this is a steep average and insurance premiums are only predicted to continue to rise.
By cutting down your monthly bills, you can lessen the impact of inflation on your personal finances and set yourself up for a better cushioned future — without sacrificing protection in the event of an emergency. Here’s how to do it.c
Shop around for a better rate
Car and auto insurance rates are set to continue rising in 2023. And while keeping up with the cost of rising insurance rates may feel impossible, it doesn’t have to be.
You don’t have to lower your coverage to lower your premium — you just need to find a better deal. SmartFinancial can help you do this.
It’s an easy, online platform to compare the best home insurance rates in your area. All you need to do is answer some quick questions and they’ll instantly sort through over 200 insurers to find you a better rate.
SmartFinancial offers a one-stop shop where you can get an honest look at what’s available to suit your unique needs without being bombarded by aggressive sales lingo.
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Your auto insurance provider is probably ripping you off, too
A survey conducted by Forbes found that 58% of drivers believe they overpay for car insurance — and that their main reason for switching to different providers is to save money.
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They’ve got the right idea, but the options seem endless and shopping around on individual sites can be exhausting.
That’s why SmartFinancial’s wide database of insurers also extends to auto insurance. Their comparison tool can find you the best rates and any potential discounts within minutes.
When you shave some money off your car insurance bill, you’re making more room in your budget to invest or simply cover the rising costs of, well, everything.
Stop paying for things you don’t need
Insurance isn’t the only expense Americans are wasting money on. Whether it be unused subscription services, utilities, overdraft fees or late payment fees, you’re likely spending money you could be saving — without even knowing it.
A report by LendingTree found that 64% of Americans have paid a bill late before. Of those who have paid bills late, 61% said it was because they couldn’t afford it and 23% said they forgot about the bill entirely.
Rocket Money is a finance management tool that makes you more aware of your spending. It can tell you what subscriptions you’re paying for but not using, automate payments so you never pay late fees, and track your savings and investments.
This free app is a great option for pulling the reins on your finances, so you don’t end up unprepared in the event of a recession. To start saving, just provide your email and link your bank account.
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Em Norton is a Staff Writer for Moneywise. Em holds a B.A. in Professional Writing from York University and has been writing professionally since 2019. Em's work has previously been published by Room Magazine, IN Magazine, Our Canada and more.
