5 Ways to Lower Your Insurance Premiums

lower your insurance premiumsHaving the right type of insurance coverage will allow you to not only protect your belongings but can provide peace of mind for your loved ones.   Here are several ways you can lower the cost of insuring your auto, home, and life.

Shop Around

Shopping around may seem like the easiest way to save money on insurance but there are potential pitfalls you want to avoid.  Simply going with a company with the cheapest quote doesn’t mean you have made the best decision.  Going with a cut rate insurance company may end up costing you both time and money due to inferior coverage or being dropped after filing a claim.  Like many purchase decisions, it is often a better value going with a quality product over a less expensive alternative and this is true when it comes to insuring your home, auto, and life.  Choosing an insurance company that has been around for many years and has a long history in the insurance business will provide you the peace of mind that they will continue to be there when you need them.

 

Good Credit Score

Having an excellent credit score can save you hundreds of dollars in insurance premiums.  Why?  Your insurance rating is determined in large part due to what type of risk your are.  Engage in risky behaviors like drinking and driving or speeding and you will pay much higher insurance premiums.  Believe it or not, your credit score is also used by various organizations including insurance companies to get a better picture of what type of risk you are. Not paying your bills on time, letting your insurance policy lapse, or having a higher than average credit utilization ratio means you are a higher risk than someone that pays there bills on time.

 

Consider a Safer Neighborhood When Moving

I’m not suggesting that you decide where to live based soley on the cost of insuring your home and auto but all things being equal, why not chose a location that could potentially save you a lot of money? The difference in premiums from one neighborhood to the next can amount to hundreds of dollars in savings per year and thousands over the life of the policy. Use carinsurance.com’s car insurance calculator to see average insurance premiums for zip codes in your city.

 

Use Technology to Save

Some insurance companies have a tool that plugs in to your diagnostic port and records your driving habits like acceleration and braking rates as well as the time of day.  In exchange for sharing this data you can earn discounts ranging from 10-30%.

 

Have Teens in the House?

Let’s face it, teenagers are expensive and it doesn’t get more expensive than insuring them as new drivers.  The good news is that there are options out there to lower the cost of insuring your teen. Most insurance companies offer a number of discounts targeted at teens such as discounts for driver education courses and good student discount.  You’ll want to check with your insurance agent to see which discounts are available and what the requirements are.

By using the above strategies along with raising your deductibles and having more than one policy with your insurer can result in big savings.

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