Tips to Decrease Insurance Costs
- Most insurance policies have a deductible, an amount you have to pay out of your own pocket when a loss occurs. Deductibles keep people from filing claims on minor issues. If you want to save money on your insurance premiums, raise your deductible. For example, if you have a $500 deductible, you can raise that to $1,000. This will increase the amount of money that you will have to pay if you have a claim, but it will lower your monthly premiums.
- Most people buy several types of insurance to protect against various losses. For example, many have an auto insurance policy, homeowners insurance and life insurance. Instead of getting each type of insurance from a different company, consider bundling them with one carrier. Many companies give discounts to customers who buy all their insurance through them.
- Most people don't realize that their credit scores affect what they pay for insurance. Companies use a variation of the credit score to determine your premiums. Insurance companies think there is a correlation between a good credit score and someone who is less likely to file a claim. Pay your bills on time, pay down your debt, and you could bump up your credit score.
- To save money on insurance, one of the best things you can do is shop around. Many people simply take whatever insurance their parents had and stay with that insurance company for the long term. With this strategy, you never really know if you are getting the best deal available. By shopping around with multiple carriers, you can get real quotes and determine who has the least expensive coverage. When you shop around, insurance agents might offer extra discounts to earn your business.