Despite what many people think, not all insurance companies are created equal. Rates can vary by hundreds of dollars per year for identical coverage. The general rule is to get at least three quotes when shopping for insurance. This will allow you to compare multiple rates and choose the insurer that provides you with the most coverage at the lowest price. When in doubt, it’s helpful to call and speak with an insurance broker, who, for a fee, can help you find the best deal.
Bundle policies with one carrier
Buying your home and Auto Insurance with the same company can help you take advantage of a multi-line discount and save up to 15% on your monthly premiums. Nonetheless, you should always compare rates from multiple carriers to make sure the combined cost is lower than purchasing separate policies from different companies.
Increase your deductible
Your deductible is the initial amount you must pay toward a claim before the insurance company begins to cover costs. This number greatly affects monthly premiums. If your deductible is low, you will pay more for your insurance. If it is high, your rates will be lower, but you will have to pay more in the event you need to file a claim. Thus, you want to make your deductible as high as possible, but it should never exceed an amount that you’re not comfortable paying out of pocket.
Make your home safer
Most home insurance companies will give you discounts for making your home more resistant to disasters, theft and other threats. This includes installing a home security system, purchasing storm shutters, adding an automatic sprinkler system, etc. Make sure to speak with your agent to learn about additional ways to protect your home.
Maintain good credit
Your credit score is a numerical ranking that indicates how likely you are to repay your debts. Insurance companies have been checking credit scores for many years because policy holders with negative credit ratings are less likely to pay their premiums on time and more likely to file a claim. These factors make customers with poor credit riskier to insure, which ultimately results in higher premiums. So make sure to work on improving your credit score. A good credit history will not only help you save on your insurance, but also make it easier to meet other financial goals, as well.