Shop around for the best rates
The cost of insurance coverage can vary significantly between companies. That’s why, when you are shopping for insurance, it’s extremely important to perform your due diligence to make sure you’re getting the most protection for the cheapest price. There are a number of creditable online services, such as Homeownersinsurance-quotes.org and Netquote.com, which allow you to instantly compare quotes from several top-rated carriers – for free. You can also choose to hire an insurance broker to shop around for you. Brokers are well connected and may be able to find you a great policy that you otherwise wouldn’t have been able to locate. Unlike buying online, however, a broker charges a fee or commission for their services.
Regularly review your home insurance policy
You should always have enough insurance to cover the replacement cost of your home and its contents, but it should never surpass that amount. You should review your policy at least twice a year to make sure you’re not over-insuring (or under-insuring) your home. You should also look over your policy when it’s up for renewal or when you make any major purchases, renovations or alterations to your home. Don’t hesitate to ask your agent about additional ways to lower your home insurance premiums.
Raise your deductible
Your deductible is the portion of any claim not covered by the carrier. This number greatly influences the cost of insurance. Raising your deductible will lower your premiums, but it will also leave you more financially responsible if you have to file a claim. As a rule of thumb, you should set your deductible at the highest amount you would feel comfortable paying in the event of a loss.
Take advantage of policy discounts
You can save as much as 15% on your premiums by insuring your home and automobile with the same company. Many insurance providers also offer discounts for taking home safety measures such as installing a burglar alarm, smoke detectors and storm shutters. Additionally, driving a car with airbags and maintaining a clean driving record can help you save on your auto insurance.
Improve your credit score
Statistics show that policyholders with poor credit are more likely to file a claim, less likely to pay their premiums on time, and, consequently, are riskier to insure. Thus, managing your money well and maintaining a good credit score will work to your benefit when your insurance rates are calculated.