Insurance costs can vary depending on the needs of the consumer and will depend on your career, location, age, and gender. It’s important to review your insurance coverage at the time of renewal to see if your insurance costs can be lowered. There are many ways companies are seeking to lower your insurance costs, helping you save money and use the money for something else.
Bundle Your Coverage
If you need to insure more than one car, home, or motorcycle, your insurance company may provide a bundle of savings. Consumers can save a significant chunk of money when they bundle home and auto insurance with the same insurance company. This is because there are a lot of overlap costs that come with your insurance payments, and companies can combine those costs when they are covering all of your insurance together instead of each being managed by separate companies. Shopping for an insurance quote will give you the opportunity to find the best quote, coverage, and bundle options. Allowing companies to bundle your insurance together also gives those companies an incentive to give better prices than they would with separate services, as it gives them more business.
Raise Your Deductible
The lower the deductible is, the more money you are going to pay. Insurance companies lower the annual premium if you decide to raise your deductible to $1,000 or $1,500, which could save you around $200 per year. This is an especially good option for those who are at low-risk for the need to submit claims later, such as those who work very close to home or from home and therefore don’t do much driving, or those who live in areas that are low risk for natural disasters that could damage the home. Shopping around among insurance agencies and companies will allow you to get the best insurance rate available. Some insurance companies also offer no deductible on car insurance depending on your driving record. Vanishing deductible is typically offered to those with a long driving history of no tickets or accidents.
Take Advantage of Discounts
Many insurance agencies provide discounts if you’re part of an organization or work in a particular career. Some insurance agencies provide discounts for education, government, contractors, unions, and more. Major insurance companies also will offer up to 25% by “going paperless,” aka paying online or having automated payments taken from your checking account. This is due both because it increases the likelihood of payments being made on time and regularly, and also because the government offers them tax benefits for being more eco-friendly by saving paper. You can also save even more money by paying for your policy up to a year in advance instead of by the month. Go through the discounts your insurer has to offer to make sure you’re saving as much as possible.
Save Those Miles
Insurance companies base your insurance premiums on the miles you drive each year. If you are one that drives a lot of miles each year, you may want to consider alternative options to save your miles and premiums. Carpooling to work, taking public transportation, or riding a bike to work can help save your insurance. Some companies offer electronic monitoring that is directly plugged into the car to help monitor your miles and driving which could lead to further discounts. Others will use a similar device to measure how safe of a driver you are and give you major discounts based on that. If you are in dire need of discounts, look for companies that use these methods to give reduced insurance prices.
Shopping around for insurance quotes is important as the insurance company can help you save money based on your driving habits. Many people will stay with the same company for many years without checking to see what other companies are offering. This mistake can cost thousands of dollars every year as consumers are left unaware of more competitive offers that are available to them. When it’s time for your insurance policy renewal, ask your insurance company for the newest discounts or what kind of discounts are available for you to help you save more money. This will encourage your provider to make sure you are getting the best offers and allow you to avoid overpaying needlessly for your insurance.
Author Bio: Meghan Belnap is a freelance writer who enjoys spending time with her family. She loves being in the outdoors and exploring new opportunities whenever they arise. Meghan finds happiness in researching new topics that help to expand her horizons. You can often find her buried in a good book or out looking for an adventure. She highly recommends seeking insurance quotes to compare prices before buying insurance.