Propper control of your insurance premiums could save you hundreds, if not thousands per year; From car insurance to health insurance, even homeowner coverage — understanding how to get the greatest prices and finding coverage that works for you without overpaying. Here are 10 secret tips to reduce and maintain your premiums.
Before settling on a policy, get quotes from different providers.
Never go with the first insurance policy you come across. You can compare online and request multiple providers’ quotes. Even for the exact same coverage, insurance companies will quote different rates and finding these differences can save thousands.
Tip: Seek unbiased comparisons from a specialist or an insurance broker.
Bundle Your Policies
Consider bundling insurance policies If you have multiple types of insurance coverage, many insurers will offer a discount if you purchase the different coverages through them. For example, bundling your auto and home insurance can save you as much as 25 percent off premiums.
Short-term: Inquire your provider about bundling discounts.
Increase Your Deductible
The higher the deductible, the lower the premium. Increasing your deductible will lower the monthly payments, provided you have a solid financial cushion.
For example, going from $500 to $1,000 deductible could save 15% a year.
Maintain a Good Credit Score
Many insurance companies will review your credit score to establish premiums. A higher score indicates responsible behavior with finances and results in better rates.
Ways to Improve: Always pay bills on time, keep credit card balances low compared to limits (ideally below 30%) and regularly check your credit report.
Take Advantage of Discounts
Besides these two major discounts, insurance providers may give a few others such as:
- Safe Driver Discounts
- Good Student Discounts
- Loyalty Rewards
What to Do: Request a list of all available discounts and what you must do to qualify for them from your insurer.
Review Your Coverage Annually
Insurance needs change as life changes. An annual review of your policy will uncover excessive coverage or options.
For instance, if you paid off a vehicle loan, you might not need collision or comprehensive coverage.
Install Safety Devices
Things like smoke alarms, security systems, and anti-theft devices can earn you a discount. Insurance companies have been known to discount customers who also make them more safe.
InsurePro Tip: If you do have impact-glass installed, be sure to supply proof to your insurer for an instant discount.
Avoid Small Claims
Even small claims can raise your premiums if they are made on a regular basis. Instead, pay for small claims out of pocket to keep that history clean.
Perk: Most insurance companies provide a claim-free discount to individuals without any claims record.
Look Into Usage Based Insurance
Usage-based insurance (UBI) programs monitor how you drive and give discounts to good drivers. This can reduce the cost of your car insurance by a good amount if you are a cautious driver.
How It Works: Insurers track mileage, speed, and braking with a telematics device or app.
Collaborate with a third-party agent
Because they are not limited to one insurance provider, independent agents can work through different options for you to get the best price on the policies that matter most.
Why It Matters: They can provide a bespoke service and may be able to find policies that are not available online.
Final Thoughts
You do not need to reduce your quality of life from saving on insurance premiums, you only need to make smart decisions and be assertive in managing things. With these 10 tips, you could get the most bang for your buck. Taking the time to compare your policies and ensuring you are aware of discount options can save you money in the long run.
