One of the questions that I get all the time, whether it’s from an acquaintance, a prospective client or just someone off the street that finds out that I am an insurance agent: How can I save money on my insurance? This is in part due to a handful of those cut-rate car insurance companies out there that have built their advertising platforms on trying to be the cheapest company around. As much as this is a thorn in my side and I cringe when I see those commercials, most people I encounter realize that, as with everything, you get what you pay for.
So, how do you find a balance? How do you protect yourself and save money? Here are a few easy steps toward lowering your insurance rates.
1 – Raise your deductible. It’s not as scary as you’ve been led to believe. High deductibles are a great way to save money because they put you into a whole new category of insured that are less likely to make claims.
2 – Talk to your agent. There are tons of discounts available. They are different for every company so I won’t list them here but your agent should be able to go over them with you.
3 – Raise your credit score. That’s right. Just like everything else these days, your credit score will affect your insurance rate. Most companies don’t go by the traditional scores, however. What insurers are looking for is on time bill paying and to see how long you stay with companies such as cell phone carriers and credit cards because that is a good indication of your loyalty to a company.
4 – Use the same company for all of your insurance. With some companies this is the biggest discount they offer. Use one agent for your home, auto, umbrella and life and you may see big savings.
5 – Secure your home. Dead-bolt locks, burglar alarm, fire alarm, sprinkler system. These all qualify for discounts with most insurance companies.
Take these steps and the savings that add up for you could be huge. The important thing to take away from this is that you don’t need to compromise your coverage to save some money on your insurance. Hopefully your agent has already gone over most of these with you and gives you an annual insurance review to make sure that all discounts that you qualify for are on your policy.