Top 10 Ways to Save on Insurance Rates & Coverage

Tips and Tricks to Save You Cash

by Michael Reubelt

Home, automobile, and other insurance costs can add up quickly, but there are a number of ways to save money on them. While some cost-cutting methods save you money immediately, others help you save over long periods of time. Whatever approach you take, staying active and informed about your insurance dollars will help you make the most of them.

Compare Rates and Quotes

When purchasing any type of insurance, be sure to shop around. Comparing rates and quotes between different agencies helps you find the best deal possible. Do not be afraid to let insurance agents know that you are looking into other agencies, or that you have found a better deal elsewhere. This may result in your agent offering a lower price to keep your business.

Good Credit

A good credit rating is a key component towards getting a lower price on many types of insurance. Good credit shows an insurance agency that you can pay your monthly balance on time as well as any other costs you may incur. Insurance companies offer lower rates to customers with good credit and higher rates to customers they view to be a risky investment. Keep excessive bills or loans off of your credit score to ensure a lower rating.

Investigate Discounts

You may be eligible for a discount on your insurance if you are a senior citizen. Similarly, ask your insurance agent if any discounts are available when purchasing multiple types of insurance at once. You can often save money by purchasing all of your different types of insurance with just one company.

Check Your Policy Annually

Perform an annual check on your insurance to make sure you are not paying for things that you do not need. Look for hidden rates and fees in your policy that should not be included. Make sure you understand exactly what you are paying for, and what you can expect in return.

The Type of House or Car You Buy

Size has an impact on insurance rates. Purchasing a small car or house can lead to smaller insurance rates. A car with a number of safety features or roadside assistance can cut down on premiums, just as a home with a security system can reduce your overall insurance rate.

Higher Deductibles

By assuming more responsibility on a higher deductible, you are lowering the amount of responsibility for the insurance company, which can significantly lower your premiums over time. It is important to bear in mind that, while you may save on premiums, if you ever need to make a claim you could end up paying more, since the insurance company will be paying less.

Location

When purchasing a home, the location can affect both the price of the property as well as the insurance rate. Certain areas are more at risk to burglary, as well as flooding and other disasters, which could result in a higher cost.

Keep Your Coverage Up To Date

Paying your insurance bills on time every month will eliminate additional fees or penalty charges. If you need to delay or postpone a payment, call your insurance agency and arrange an extension before the bill is due.

Protect Your Investment

Take driver safety courses to keep your skills sharp, reducing your chance of an accident, which could lead to higher rates. Make sure your home stays up to code and try to fix minor problems quickly, before they grow into something larger.

Avoid Insurance Risks

There are a number of small risk factors that can add to the cost of any insurance policy. Swimming pools tend to add to the cost of home insurance and sports cars can carry a much higher insurance cost than other vehicles. Read the fine print of your insurance policy and talk with your agent about it to make sure you understand these factors.