When searching for financial service products, we all shop around to find the best deal. Yet, once we purchase the product, we barely look at it again, sometimes for years. And, as most financial products have built-in annual increases, these premium or interest hikes can add up alarmingly quickly. Here are four of the most common financial service products that you should periodically price check to make sure that you are still getting the best deal.
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Obviously, the value of your car decreases each year, but is your insurance broker decreasing the premium accordingly? A new car, for example, will lose 19 percent of its value in the first year. After five years, your cars’ value will decrease to 40 percent of its initial value. Conversely, car insurance premiums can increase by 5 to 15 percent yearly.
Most insurers leave it to you, the insured, to advise them on your cars depreciated value before they will adjust the premium. Check your cars’ current value using a depreciation calculator and pass this valuation figure on to your insurance broker when the policy renewal time comes around. You’ll be surprised at how much money you will have saved by the time your car loan is paid off. But even then, it’s wise to keep your car insurance in place.
Did you know that you can refinance a student loan if you find a better interest rate and end up paying less?
According to the results of a 2017 bipartisan poll on student loan refinancing conducted in the USA, 91 percent of American voters surveyed supported policy proposals that permit borrowers to refinance existing education loans at lower rates and to create flexible repayment options. Nowadays, it’s quick and easy to price check your student loan refinancing rates from up to 10 lenders in just a few minutes, and without affecting your credit score too.
Besides the usual service fees associated with banking products, banks often charge additional fees even when the bank itself has approved the transaction. Sure, it’s a pain changing banks, but you can always use the price check from a competitor to convince your banker to lower rates and service fees. After all, bankers know that customer retention is preferable to new customer acquisition, so they are likely to match or beat their competitors’ rates.
Depending on your goal, you can refinance your home mortgage, either to pay off your mortgage sooner, to reduce your interest rate, to lower your monthly payments, or to convert to a fixed rate. When doing a price comparison check though, consider each loan’s interest rate, characteristics, and costs.
Overall, the time dedicated to periodically price check the products and services offered by your existing financial service providers can save you a great deal of money that you can then use to pay off loans quicker and save even more in the long run. It’s certainly worth the effort at the end of the day.