4 Ways to Save Money on Insurance Costs

Managing Money / Friday, November 11th, 2011

Insurance is one of those things you hate paying for until you need it. But going uninsured — or underinsured — is a short-sighted way to save some money.

There are legitimate ways of keeping your insurance expenses in check, however. Here are four ways you can lower the cost of your insurance:

  1. Raise your deductible. One of the simplest ways to lower the cost of insurance life homeowners or auto is to raise the amount of your deductible. The more you raise it, the more you will save. But be careful to pick a number that you can safely self-insure. A $5000 homeowners insurance deductible can save you a load of cash, but will you be able to come up with the amount in the event of a major claim?
  2. Shop around. Different insurance carriers offer different prices. Shop around by requesting quotes from different companies to see who is the most competitive. Make sure you’re comparing apples to apples, however.  You life quotes, for instance, should all have the same face value, term of coverage, etc. Your homeowners and auto quotes should have the same deductible amount and types of coverage.
  3. Place your insurance with one carrier. Shopping around can have one downside, however: if you pick the cheapest company for each policy, you may end up having different types of policies with several different companies. Not only does this take more of your time and attention, but you will lose out on any discounts that are offered for having multiple policies with one company.
  4. Research the discounts you’re eligible for. Most companies have different non-insurance ways of lowering the cost of your insurance. For motor insurance, it might be something like a good grades discount for teens. For homeowners insurance, alarm systems may be the ticket. Find out the different kinds of discounts your company offers and how you can qualify for them.

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