Andre couldn’t believe it; his insurance premium went up again!
Having never been in an accident or filed a claim, the price increase was confusing and infuriating. Unfortunately, Andre didn’t know those fluctuating insurance premiums were here to stay.
There are around 50 million car accident injuries a year, and that’s not counting fatal crashes. Sometimes an uptick in overall accidents means a higher premium for you.
Don’t fret though! You can do something about your rising rates. Read on to learn how to save money on insurance.
1. Double-Check Your Coverages
One of the best ways to save money on insurance is by reviewing your policy. You should perform quarterly reviews of your policy every single year. You never know when there’s a coverage that slipped onto your policy that you don’t actually need.
For instance, let’s say that you have comprehensive collision coverage on your car insurance. However, your vehicle isn’t worth more than $3,000. It could be in your best interest to remove the collision coverage in this situation.
Of course, it’s all going to depend on how much you’re paying for the collision coverage. If you’re paying $3,000 to cover a car worth $3,000, it’s not cost-effective. For low-value vehicles having full coverage doesn’t always make sense. You can save hundreds of dollars every month by removing the unnecessary coverages.
However, you’ll want to be careful when it comes to cutting coverages. Don’t get overzealous and start cutting out coverages that you actually need. That’s why we suggest having an insurance agent walk you through each coverage on your policy.
2. Bundle Your Insurance Premiums
Are you working with multiple insurance companies? Sometimes having multiple providers is the best way to go, but that’s not always the case. In a lot of situations bundling your home and auto insurance together can help you save money on insurance premiums.
You’ll have to do a bit of shopping around to find the best bundle deal. We suggest starting off by calling big-name insurance companies, that way, you’ll know you’re working with someone you can trust.
Be sure to get exact quotes when you’re talking to the different insurance companies so that you can compare all of the prices later on. Homeowner’s policies won’t cover damages from flood. If you live in a flood-prone area, it’d be in your best interest to buy flood insurance too.
3. Play With Your Deductibles
Have you ever had to file an insurance claim before? If yes, then you’re probably familiar with what a deductible is.
A deductible is an amount that you agree to pay before your insurance coverage kicks in. For instance, if you have comprehensive and collision coverage for your car, you could have a deductible of $500. If you got into an accident and needed to use your coverages, you would first have to pay $500.
After clearing out the deductible, the insurance provider would take over. The lower your deductible, the less you have to pay when you file a claim.
It costs more to maintain low deductibles. Since you’re taking on less risk, the insurance company makes up for it with higher premiums.
To lower your premiums, call your insurance provider and let them know you’d like to get quotes for adjusting your deductible. Find out how much it would be to increase your deductible by $100 increments.
If the savings are significant, it could be a great move. But be smart. Never send your deductible amount so high that you won’t be able to pay it.
4. Shop Around for Better Policies
Let’s face it, nobody wants to spend their day shopping for insurance. After setting up your car insurance or home insurance policy, you probably didn’t want to ever think about it again. However, letting your policy run on autopilot is never a good idea.
Set aside a day this week when you can call providers. Plan on spending 2 to 3 hours getting full quotes.
To speed things up, have all of your information handy, including your current policy declaration. While it might not be fun to shop around for better insurance rates, it can definitely pay off. You might even be mad at yourself when you realize you could have started saving hundreds of dollars if you had only switched sooner!
As your policy comes up for renewal again, you’ll need to shop it around again. You should shop around for better Insurance coverages before every policy renewal. You can even shop around for better coverages in the middle of your policy term.
5. Save Money on Insurance Premiums With Safety Features
Insurance companies love to reward safe customers. If you’ve recently installed an alarm on your car or your home, let your insurance agent know about it. You might qualify for a special savings opportunity.
A lot of insurance companies also offer bonuses for safe drivers. If you’re not sure whether or not your carrier offers these bonuses, call them and find out today.
Ask them what they’re doing to reward your safe driving habits. If they don’t have any type of incentive plan, it’s time to shop around for a better policy!