9 Ways To Save Money On Your Insurance

With the global pandemic still in effect and a rise in inflation, families are looking to pinch pennies anyway they can. One good start is to consider your insurance policies. You might discover that you’re paying way too much for coverage. If you want to save some serious money on your insurance, take a look at these 9 tips.

1. Seek out insurance discounts

Are you a student? A military veteran? A senior citizen? Or even somebody who has never had to file a claim due to a clean driving record or good health? Insurance companies are always in need of customers and understand that offering different types of discounts is a good way to attract or retain them. Your provider might even give you a discount as a reward for your loyalty. Check out the various companies’ websites to see what kind of discounts they’re offering.

2. Search around for the best insurance rates

As your current insurance policy gets ready to expire, it’s a good idea to start shopping around for better rates. You might find, for example, that you’re able to save $1000 annually by switching home insurance policies. The same situation applies to auto insurance. Take a look at all the brands and compare their prices. Don’t be shy about telling your current insurance provider either; they know how competitive the market is and aren’t interested in losing you as a customer, so they might very well match the price quote offered by other companies.

3. Switch from permanent to term life insurance

Many folks choose permanent life insurance when their goal is to leave their family with guaranteed money once they pass away. However, for others, term life insurance is enough. This type of policy provides your family with money if you die prematurely in the next 10, 20, or 30 years. With such a policy, you pay far lower premiums, and it’s much more cost-effective. The big downside to this is that if you outlive your term life policy, the policy expires and the family gets nothing. But, hey, it also means you’re still alive, which is a mighty fine consolation if we say so ourselves!

4. Start the year by looking over your insurance policy

When the new year rolls in, make an appointment to meet with your insurance agent to review your current coverage. Although insurance companies have been doing a better job of laying out their terms and conditions, it is best to seek assistance from somebody who’s an expert on the matter. For instance, you might discover that your policy includes hidden fees that you weren’t aware of. Or you might be paying for add-ons that you don’t need, such as a higher premium today in exchange for having your premiums waived in the future if you should be diagnosed with a critical illness. Finally, consider switching from paying your insurance on a monthly basis to quarterly or twice a year. You could end up saving quite a bit on processing fees.

5. Home protection is essential

In the event of damage to your home as the result of inclement weather or a fire, insurance companies help with the cost through home insurance. However, if you take the time to shore up your home — fortifying your roof, adding storm shutters, etc., — your insurance provider is inclined to award you with lower rates. This is also true if you install a home security system. Ask your agent about which systems they recommend. You could see your premiums cut by as much as 20%!

6. Consider increasing your insurance deductibles

When it comes to deciding on an insurance plan, one of the biggest decisions involves how much risk you are willing to incur. If you pay higher premiums, you’ll end up paying less out-of-pocket should you get into a car accident. For example, you might only be responsible for paying $500 for the accident while insurance picks up the rest. However, if you are confident in your driving abilities and are fine with accepting more risk, you can opt to pay a lower premium with the understanding that you’ll pay more for repairs (say, $1,000 instead of $500) in the event of a car accident.

7. Move to a state with cheaper insurance rates

We aren’t suggesting you pack your bags and move to Maine or New Hampshire just because those states offer the lowest auto insurance rates. But if you have a shortlist of places you’re thinking about moving to, it would be a good idea to compare the insurance rates. For example, such factors as economic conditions and weather play a role in how much insurance companies charge. Furthermore, if you are thinking about moving to a rural community keep in mind that rates will be higher in comparison to urban and suburban areas since living in a place with low population density leaves companies having to spread out the coverage to a smaller number of people within a larger area of land.

8. Two words: insurance bundling

Insurance bundling is when you buy separate insurance policies (i.e., auto insurance, homeowners, life insurance) from the same provider. Doing this will make your life less complicated since you don’t have to deal with multiple insurance agents/companies. But beyond the convenience, you will likely be offered a discount since insurance providers would be happy to count you as a customer for its various insurance coverage. But don’t simply be lured by the promise of a discount, make sure to shop and compare the quotes that several companies offer before choosing the right one for you.

9. Pay attention to your credit score

Insurance companies tend to award customers who have a good credit score since those with a higher score are less inclined to file a claim, which in turn saves the insurance company money. However, keep in mind that not all states are allowed to factor in credit scores when determining rates. For instance, in Maryland and Hawaii, credit scores cannot be factored in when setting homeowner insurance premiums. Likewise, Hawaii, Massachusetts, and California forbid this practice when calculating the price for auto insurance.