How to Lower Insurance

If you stop to look at how much money you spend each year on insurance, the figure may be staggering. Having insurance is a good idea to protect your finances and property in the event of problems, and in some cases, it may be mandatory. If your home or automobile is financed, the lender typically requires the property be insured to protect the investment.

Instructions

Difficulty: Easy

All Insurance

1. Shop around to get rates quotes from at least three different companies. This ensures that you get the lowest rates possible that are available to you.
2. Consider raising your deductible. A higher deductible means more out of pocket expense to you if you need to use the insurance but typically lowers the cost of the insurance considerably.
3. Keep an eye on your credit score. The higher your credit score, the more attractive your business is to an insurance company. Because you have proved yourself to be a good customer, the insurance company offers you lower rates to try to secure your business.
4. Ask the insurance company if they offer discounts to customers who carry more than one insurance policy with them. Many companies give a 10 percent discount or higher if you allow them to insure both your home and your automobile.
5. Pay the entire term of the insurance up front if you can afford to do so. When you choose to pay your insurance in installments, the insurance company adds a fee onto each payment. This installment fee is typically somewhere around $10.00.

Automobile Insurance

6. Choose a car that is less expensive to ensure. The make, model and year of your car has a lot to do with the cost of your insurance. In general, new, expensive, and sporty cars cost more to ensure than older, less expensive and more utilitarian automobiles.
7. Skip collision coverage if your vehicles is older and not worth that much. If your older car is carrying both comprehensive and collision insurance, you may be paying more for insurance than the car is worth.
8. Maintain a good driving record. If you have no traffic violations or accident claims, the cost of your vehicle insurance is lower.
9. Check with your insurance agent regarding low mileage and other discounts that may be available to you. Some insurance companies also offer discounts if you house your automobile inside a garage or install an anti-theft device.

Homeowner's Insurance

10. Remember homeowner's insurance when buying your home. Certain things may make the cost of your insurance lower, such as buying in a town that has a professional rather than a volunteer fire department and buying a home close to a fire hydrant.
11. Insure your home only for the amount that you would need to rebuild it if it was totally destroyed. Many homeowners insure their home for their entire purchase price. Some of your purchase price was for the land that your house sits on. Insure your home for the cost of the home, minus the value of the land.
12. Make your home safer. Most insurance companies offer discounts on homeowners insurance if you install smoke detectors and alarm systems. Some companies even offer discounts for having deadbolts on all exterior doors to your home.

Health and Life Insurance

13. Quit smoking. Smokers pay much higher premiums for health and life insurance due to the increased risks that are caused by smoking.
14. Shop for a competitively priced policy while you are in good health. If you purchase term insurance, choose one with a guaranteed renewable policy so you do not have to shop for a new policy when you are older or your health is failing.
15. Look for group health or life insurance that you may qualify for. For example, veterans, engineers or teachers. Ask your insurance agent for a list of the groups to see if you qualify for any of them. Group insurance is typically cheaper than individual policies.