With insurance, you get what you pay for. The best coverage usually comes with the highest premiums. However, if your looking to save some cash, there are ways of reducing your insurance costs without making too many sacrifices in your coverage.
Deductibles - A deductible is the amount of money you have to pay out of your pocket before your insurer will pay the rest of the claim. The lower your deductible is, the higher your insurance premium will be. For example, if your auto insurance carries a deductible of $250, consider doubling it to $500, and you'll see a drop in your premiums. Just be sure you don't raise your deductible so high that you would not be able to afford to pay it in case you need to make a claim.
Claims and Records - Try to avoid making multiple or excessive claims against your insurance policy. Insurers keep track of how much they dole out to you for damages and repairs, so if you can avoid making a claim do so. Otherwise, your insurer may deem you a high risk policy-holder and consequently raise your rates. If you've been claims-free for an extended period of time, search for an insurer who rewards customers for being claims-free.
Also, be sure to keep a clean driving record without traffic citations or misdemeanors. One ticket can raise your rates significantly, and two or more could result in very high premiums. If you do receive a citation, find out if you can take a driver's safety course to keep the ticket off of your record and avoid higher insurance premiums.
Risks - Avoid issues that your insurer could consider particularly risky. For instance, home swimming pools pose a danger for anyone who cannot swim and may result in higher insurance premiums. Similarly, an auto insurer may consider a high horse-powered sports vehicle riskier than a small family sedan.
Compare - Make a habit of regularly comparing prices among insurers. They are competitive, and you may find that another insurer can provide you with the same or similar coverage for less than what you are currently paying.
How does the Insurance Company Determine the Cost of Each Driver on My Policy?
Thanks to online comparison tools, car owners looking for the best auto insurance coverage can look at competing quotes from a range of insurance companies. Many wonder how a company determines the...
Read More →
Does an Alarm System Help Lower My Homeowners Insurance Rates?
Homeowners insurance is often necessary. If you own a home, having proper insurance helps to protect you against all of the risks that can occur, such as fire, theft, or flooding, in some cases. Po...
Read More →
What is the Difference between Named Perils and Open Perils on your Insurance Policy?
While comparison shopping for insurance, you will encounter two different types of policies: named perils and open perils policies. Understanding the difference between the two insurance policies w...
Read More →