Your insurance premium went up again and on closer inspection you see that it wasn’t just a token increase. In fact, with a little research you have discovered that your rates have been going up steadily for several years and at double-digit increases in some years. You can save money on all types of insurance — here is how.
1. Comparison shop. If you haven’t shopped for new insurance in some time, begin right now by contacting three different companies and giving them your information. If you are insuring a car, get quotes based on the coverage you now have. It should be exact to ensure that your coverage remains the same and that costs can be adequately compared.
2. Examine your needs. Maybe you’re receiving insurance for some items you don’t need. For instance, that 13-year-old sedan with 150,000 miles on the odometer no longer should include collision insurance. Drop that coverage or at least raise the deductible — you may be paying for services you don’t need explains Heubal Material Handling, Inc.
3. Find out what discounts are available. Insurance companies offer discounts, but you need to ask about them. If you have the same insurer for your car and home, then your policies should be bundled with a savings of about 10 percent offered. That may not seem like a lot but when you’re paying $2,000 for insurance, a $200 cut in premiums is huge.
4. Change your deductible. Most new cars come with $250 deductibles on collision and comprehensive. That means you’re paying a higher premium than a person who has $500 deductibles. Considers raising the deductible to lower your premium. Sure, you’ll eat the extra cost if you have an accident or some other loss. But that is a big if.
5. It is all about risk. Not all insurance companies are alike. Sure, they all want to reduce or limit their risk, but the way they calculate risk isn’t always the same. Here, you will want to speak with an agent to find out how risk is assessed. Some companies place a bigger emphasis on your address, others on your credit rating.
6. Improve your credit score. Your insurance costs may have been rising because your credit score has been sinking. This is a real problem for people who have been struggling to pay their bills. Not only are you being hammered by your expenses, but your insurance company is jacking up your rates. Help your cause by improving your credit score. Ask your insurer to reevaluate your rate based on your improved score.
7. Change your habits. If you are shopping for car insurance, you can save money by simply driving less. In fact, you may be driving far less than the 15,000 miles per year your insurer thinks you are driving. If so, contact your insurance agent and ask for an adjustment. Your premium will drop based on the number of miles you drive.
8. Ask for a rate quote before you buy. If you are planning to buy a new car, run your sample car by your insurance agent. She will give you your likely rate and you may find that rate to be well above what you can afford. If so, switch to a less expensive car. Or, heed your agent’s safety recommendations. Lane keeping assist may seem silly, but it could keep you from having an accident, saving you money on insurance premiums too.
You can save money on all types of insurance by shopping around, comparing rates and services, and then making a switch. Get in the habit of checking your insurance policies annually to ensure that your premiums aren’t killing you and that all discounts are being applied to your policy.