With the price of everything going up nowadays is it even possible to find ways to reduce any of your expenses?

Yes there is a way to reduce your expenses!  Believe it or not there is one expense category where you can reduce your cost and not have to sacrifice quality.

That expense category is insurance.

There are ways to reduce your auto and homeowners insurance costs, you may just have to work at it a bit.   Let’s review how you can keep more of your money in your pocket and less in the insurance company’s cash register.

Save Money On Your Insurance

Tip #1 –  Slow Down

  • Change your driving habits if you have a tendency to speed.  Slow down your driving.
  • Most insurance companies check for speeding tickets at least once a year.   Most insurance companies then raise your premiums based on those speeding tickets.
  • To save money by lowering your auto insurance premiums, work on your driving and don’t get speeding tickets, period!

Tip #2 – Watch Your Claim Activity

  • Don’t file a lot of claims.  Too many claims will increase your insurance premiums.
  • It’s very basic: claims cost insurance companies money; insurance companies need to recoup that money, so they raise your premiums.
  • To lower your insurance premiums, only file major claims and avoid filing frivolous, minor claims.
  • What’s a frivolous claim, to you all claims seem important.  A minor claim would be a loss that’s just an annoyance or an inconvenience to you…(ie) you spill paint on your carpet.  A major claim is when your house burns down….see the difference?

Tip #3 – Improve Credit Score

  • Credit scores carry a lot of weight with insurance companies.  Credit scores are being used by more and more financial institutions to determine rates and pricing; insurance companies are no different.
  • Insurance companies are using credit scores to draw a line in the sand on premiums.
  • Improve credit score to keep your insurance premiums low.
  • To an insurance company, improve your credit score above 750 to save money on your insurance premiums.

Tip # 4 – Combine Insurance Companies

  • Carry all of your insurance policies with the same insurance company to get the multi-policy discount.   This would include your auto, home, umbrella, motorcycle, boat, disability, and life insurance.
  • Ask your insurance agent about getting a discount on your auto insurance because you also carry your home insurance and a discount on your home insurance because of the auto insurance policy.
  • Some insurance companies also give discounts on life insurance if you insure the home and auto with them.

Tip #5 – Update Your Insurance Coverages

  • Raise your deductibles.
  • If your deductibles are high, the insurance company knows that you’re less likely to file minor claims, so they charge you less in premiums.
  • If you have an older car look into dropping some coverages.
  • Ask your insurance agent about comprehensive and collision coverages on an older car.

Tip #6 – Get All The Discounts

  • Inquire about low annual mileage discounts to lower your auto insurance premiums.
  • Install a burglar, fire, smoke alarms, dead-bolt locks and other security systems to lower your home insurance.
  • Ask your agent about additional discounts that your insurance company may offer to help keep auto insurance premiums down: these extra discounts may include:  airbag discount, anti-theft discount, multi-car discount.
  • Quit smoking.  Some insurance companies actually offer discounts on a homeowners insurance policy for non-smokers since unattended cigarettes increase the chance of a fire.

Meeting expenses can be a challenge.  A few simple adjustments to your insurance policies may help you lower insurance costs and save you money.

Lower your insurance premiums by tightening up on your claim activity, avoid speeding tickets, improve your credit score, increasing your deductible, and asking your insurance agent for all possible discounts.