Tips For Saving Money on Insurance
Skip down to: Save Money on Home Insurance
Save Money on Auto Insurance
Compare Prices
Prices for the same coverage can vary by hundreds of dollars from company to company, so it pays to shop around. Ask your friends, use the Internet, or call your state insurance department for ideas about companies and agents to contact. You should get at least three different quotes. Priority-Quote is a powerful tool to help you do that. By comparing the rates of multiple companies at one time, you will be able to determine the most cost-effective companies in your state.
In addition, the insurer you select should offer excellent service. Quality personal service provides added conveniences, so talk to a number of insurers to get a feeling for the quality of their service. Ask them what they would do to lower your costs.
Check the financial ratings of the companies with A.M. Best or Standard and Poor's.
Choose Higher Deductibles
Deductibles represent the amount of money you pay before you make a claim. If you request higher deductibles on collision and comprehensive coverage, you can lower your costs.
Drop Collision and/or Comprehensive Coverages on Older cars
It may not be cost effective to have Collision or Comprehensive coverages on cars worth less than $1,000. Any claim you make would not exceed annual cost and deductible amounts. Auto dealers and banks can tell you how much your car is worth.
Consider the Type of car you Might Buy
Before you buy a new or used car, you should check how much your insurance premiums might cost. Cars that have high theft rates, high frequency of claims or are expensive to repair will have high insurance rates. You may want to consider buying a "low profile" car such as a mid-sized station wagon or a four-door sedan. A car with safety features can save you a considerable amount of money, too.
According to the Highway Data Loss Institute, some examples of cars with low theft claims are the Mercury Sable, Chevy Cavalier, and Mazda MPV Van. Cars with high theft rates include the Mercedes, Chevrolet and Ford convertibles, and the Volkswagen Cabriolet or Golf/GTI.
Take Advantage of Available Discounts
Some insurers will offer discounts that can reduce your insurance premiums. Ask your insurer about the types of discounts their company offers. You may be eligible for a discount that would not otherwise be applied to your premium. Many companies will offer some of these common discounts:
- Low mileage/ Restricted mileage
- Passive Restraints ( automatic seat belts or air bags)
- Anti-lock brakes
- Good driver discounts (no accidents or moving violations in the past three years)
- Persistency Discounts (insured with the same company for several years)
- Defensive training/driver training courses
- Anti-theft devices (these include ignition and fuel cut-off systems, alarms, hood-and-wheel locking devices, and window identification systems)
- Nonsmoker discounts
- Drivers over age 50
- Multiple policy discounts (Auto and homeowners coverages with the same company)
- Car-pooler
- College students away from home without a car
Select Only the Types of Coverage you Need
There are six basic types of coverages:- Bodily Injury Liability
- Medical Payments
- Uninsured/Underinsured Motorist Protection
- Property Damage
- Comprehensive Physical Damage
- Collision
Review all coverages so that you don't duplicate coverages. For instance, if you already have good Medical and Disability insurance, you may not want to buy Medical payments insurance. If you have Collision and Comprehensive insurance, you don't need to buy the type of Uninsured Motorist protection that pays for damages to your vehicle.
Save Money on Home Insurance
Compare Companies
Priority-Quote is a powerful tool to help you compare the rates of multiple companies at one time, all offered by your insurance agent. You will be able to determine the most cost-effective companies in your state.
Check the financial ratings of the companies with A.M. Best or Standard and Poor's.
Choose Higher Deductibles
Deductibles are the amount of money you pay toward a loss before your insurance company starts to pay a claim, according to the terms of your policy. The higher your deductible, the more money you can save on your premiums. Most insurance companies recommend a deductible of at least $500. Usually, the higher the deductible, the lower your basic premium will be.
If you live in a disaster-prone area, your insurance policy may have a separate deductible for certain kinds of damage. If you live near the East Coast, you may have a separate windstorm deductible. If you live in a state that has hailstorms, you may have a separate deductible for hail. Likewise, if you live in an earthquake-prone area, your earthquake policy has a deductible.
Buy your Home and Auto Policies from the Same Insurer
Some companies that sell both Auto and Home Liability insurance will give you a discount if you buy both policies from them. Even though the insurance company may give you a discount, you should still shop around to see if it would be more cost effective to insure Auto with one company and Home with another.
Make Your Home Safe
Discover ways to make your home more resistant to windstorms and other natural disasters. You may be able to save on your premiums by reinforcing your roof or buying stronger roofing materials and adding storm shutters. Older homes can be retrofitted to make them better able to withstand earthquakes. Modernizing your heating, plumbing and electrical systems can reduce the risk of fire and water damage.
Understand Building Costs
Don’t include the land under your house in deciding how much homeowners insurance to buy. It isn’t at risk from theft, windstorm, fire and other perils covered in your homeowner’s policy.
Home Security
Most companies will give discounts if a home has smoke detectors, burglar alarms, or dead-bolt locks. If you install a sophisticated sprinkler system and a fire and burglar alarm that rings at the police, fire or other monitoring stations, you can save even more money. Because these systems are expensive, you may want to weigh the cost of the systems with the discounts the insurance company offers.
Other Discouts
Each insurance company offers a variety of discounts. One company may offer a discount for Mature owners, while another company does not offer that particular discount. It is important to find a company that tailors its discounts with your lifestyle.
Group Coverage
Some employers administer a group insurance program. Check to see if a homeowner’s policy is available and is a better deal than you can find on your own. Some professional, alumni and business groups offer insurance packages with insurance companies, which includes a discount for association members.
Stay with the Same Insurer
You may receive a special discount for being a long-term policyholder. Some insurers will reduce their premiums if you remain a policyholder for six years or more. You should still compare this price with other policies periodically.
Review the Value of your Possessions Annually
Every year you should re-assess your belongings to make sure that you are insured adequately. In some cases, you may have purchased expensive items that need to be insured. In other cases, you may have some items that have depreciated and you need less coverage for those items.
Buying a Home
When considering buying a home, there are several liabilities to think about. Is the home close to a fire hydrant and fire department? If not, your homeowners insurance will be more expensive.
Is the home in a storm-prone area of the country? If it is, make sure that the home is storm-resistant. A brick home can survive better than a home that has frame construction.
Are you in a flood plain? Is the home in an earthquake zone? All of these things can cause your home insurance to be more expensive.