Looking for ways to make the most of your budget without having to give up too much? One often overlooked tactic is to lower your home insurance premiums. Even though insurance rates have been climbing, there are quite a few strategies to bring them down.
**Auto Insurance Considerations:**
1. If you have an older car, consider dropping collision and comprehensive coverage. Since your insurer will only pay up to your car’s current resale value, it might not be worth continuing these coverages. Check how much you’re spending on these policies and compare it with your car’s current value. If the cost of coverage is higher than what you’d get from the insurer, it might be time to cancel.
2. Raise your deductible. This is the amount you have to pay out of pocket before your insurance kicks in. Opting for a $1,000 deductible instead of $500 can save you up to 25% on your premium. With a $2,500 deductible, the savings could reach 40%. Just remember, if you file frequent small claims, your insurer might increase your rates or even drop your policy.
3. Shop around for quotes before starting or renewing a policy. Many insurers are reducing their prices, so searching online can help you find cheaper car and home insurance. After getting some quotes online, talk to an independent agent who works with multiple companies—they might find you even better deals.
4. Use all the discounts available to you. Insurance companies often offer discounts for drivers who log fewer miles (under 12,000 per year), senior drivers (usually 55+), those who’ve completed driver-training or defensive-driving courses, students with good grades, and cars with added safety features. Some companies, like Geico, also provide discounts for active or retired military personnel. Bundling your car and home insurance with the same company can yield further savings.
5. Keep up good driving habits and maintain a healthy credit score. Things like speeding tickets, minor accidents, and unpaid credit card bills can hike up your insurance rates.
6. Let your insurer know if your teenager moves out or goes to college. If your teen isn’t regularly driving your car anymore, your rates could go down.
7. Consider switching to a safer car. Vehicles with better crash-test ratings often come with lower insurance premiums.
8. Don’t skimp on liability coverage. You need enough coverage to protect your assets if you cause an injury in a car accident. The state minimum coverage is often not enough to safeguard your home, investments, and earning potential, so make sure your liability coverage is adequate.