Nobody likes to pay for insurance. As Americans, we pay a lot of different types of insurance every month. Homeowners, auto, health, life, and liability insurance, just to name the most common types. Wouldn’t it be nice to pay a little less every month. Here are a few things you might try in order to lower your monthly bill.
- Shop Around
Take some time to do a little shopping around insurance providers. It doesn’t cost anything to get a quote, and it could save you some money. Have your current information with you when you ask for a quote to make sure that you’re comparing apples to apples. Most companies will quote you online, but if you want a more personalized experience, call some local agents and make an appointment.
Finding an insurer is not just about the price. Some companies just do it better than others. Ask friends and neighbors for recommendations then ask an agent what they have to offer. Some companies will give discounts other won’t. Some offer value added perks like roadside assistance.
- Raise your deductible
A deductible is the amount of money you pay before your insurance company kicks in their share. A higher deductible reduces your monthly premium by as much as 25%. If having a high deductible makes you nervous, you may want to keep the amount of your deductible in a savings account in case you need to make a claim. But you can save hundreds of dollars per year on monthly premiums by keep your deductible high.
- Get the right amount of insurance.
The purpose of insurance is to be able to recover from a loss. You don’t want to be under insured, but you waste money if you’re over insured. When insuring your home, you only need to insure for the amount of money it takes to rebuild your home. Your land will not burn up in a fire, so you don’t need to insure that portion of your home. Find out what it would take to rebuild your home and insure it for that amount.
- Multi line discounts
Insurers want you to insure everything with them. It’s called a multi line discount. So buying several different items with the same insurer may save you 5% to 20%. When getting quotes, make sure to ask for a price that includes your home, your auto, other autos if you have them,and your life insurance.
- Bump up your safety quotient.
Ask your agent what you can do to lower your insurance premiums. They may be able to recommend steps like, replacing old wiring, adding smoke detectors and fire extinguishers, or buying a more energy efficient furnace and water heater.
- Improve your home security
Do you have a smoke detectors on every floor? How about a burglar alarm or dead-bolt locks. You may get lower rates by replace a hollow core front door with a solid wood or metal door. Better outdoor lighting may prevent prowlers and burglars. You may be able to reduce your premiums by 5%
- Reevaluate your coverage
Once a year, talk to your agent to see if you have the right coverage amounts. If there have been changes in your life, you may need to bump up or possibly bump down your coverage. You don’t need that extra policy you bought for the diamond engagement ring you sold. Maybe you added an addition to your home and need to insure the new wing. Are there any new discounts you qualify for?
- Purchase strategically
There are so many variables that go into purchasing homeowners insurance. Some parts of the country cost less than others. Some cities within the same state cost less for insurance. People who live next to a fire hydrant pay less than people who don’t. Citizens of crime ridden neighborhoods pay more. Keeping these things in mind when purchasing may save you several hundreds of dollars per year.
- Maintain good credit
Paying your bills on time and eschewing debt are the best ways to keep your credit score high. Insurers will often charge more for people with low credit scores.
- Other discounts
You may earn discounts just for being you. If you’re over 65 and retired, you may earn a discount. If your teenage driver has good grades, you may earn a discount. You just turned 25 and are married, you may earn a discount. It may seem like giving too much information but you may get discounts just for being who you are.
