While almost all of us pay for some amount of insurance coverage, very few of us could say that we fully understand what we are paying for. Because insurance is never �one size fits all,� it is actually an area where you have the most opportunity to save money. By customizing your policies to your precise needs, comparison shopping and taking advantage of discounts, you have the potential to save hundreds a year.
Consider the following tips and give your insurance agent a call today. If it has been over a year since your last policy change, then you have even more to gain by touching base with your agent and ensuring that you have the coverage you need at the best possible price.
Work With an Independent Agent & Consider Switching Insurance Carriers
The insurance industry is a very competitive business. Often, you can find a lower rate for the same amount of insurance by simply comparison shopping. If you work with a captive agent who only represents one carrier, then you may want to make an inquiry call to an independent agent just to see what is available. You may be surprised to find that another company has the same credit rating, excellent consumer reviews and comparable benefits as your current carrier, but with significantly lower rates.
Consolidate Your Insurance Policies
If you are very happy with your current insurance carrier or are committed to working with your captive agent, you can still call them to find out how you can save money. They are invested in keeping you and will likely have a number of suggestions. Additionally, you will likely benefit from switching your other policies to this one carrier in order to take advantage of multi-policy discounts. Plus, you may want to check if you are nearing a milestone that would qualify you for even greater savings.
Ask About Discounts
Good driver, group associations, military, club membership, and senior citizen discounts are just a few of the discounts offered by insurance companies to incentivize you to stay with them while taking efforts to reduce your risk. A quick look at your written policy will show which discounts you are currently receiving and others you might qualify for as your circumstances change. For example, if you now working at a job that is just around the corner from your home and have significantly reduced your annual mileage, you might qualify for a low mileage discount. Or, you can proactively take steps to qualify for additional savings, such as signing up for automatic payments, completing a defensive driver course or installing a security system for your home, business or car. Talk to your agent for more information.
Raise Your Deductible
Policies with low or no deductible can be quite costly. Why not consider raising your deductible slightly and use the money you save on your lower premiums to start a rainy day fund.
Eliminate or Reduce Coverage
Some insurance coverage may be considered duplicated or unnecessary depending upon your circumstances. For example, you may be paying for roadside assistance through your insurer or you may be able to stop paying for rental car damage insurance if you already have rental car coverage through your credit card or personal automobile insurance. This is why it helps to know exactly what added benefits you get through your credit cards, associations or other memberships. You may also find that extended warranties are more affordable if you work through your insurance carrier rather than your car loan provider. Or, you may be able to eliminate some insurance coverage altogether. This is particularly true for those with older vehicles where you could probably do without comprehensive and collision coverage.
Get Help
If you are struggling to afford even the minimum requirements for car or home insurance, visit your state insurance site. There are often a number of programs that help low-income individuals and families get access to low cost insurance.
Talk to Your Agent
Changing your insurance policy might mean additional savings, but make sure you understand how your changes might affect your overall coverage. Your agent is usually more than happy to make any changes that you request, but if you need to weigh the pros and cons of your decisions, then let them know.