It’s the beginning of the new year, and the last thing anyone wants to think about is whether their home and auto insurance companies are giving them the best rates. Many Americans don’t think twice about their insurance premiums.
Car Insurance Coverage
The Insurance Information Institute states that the average annual premium across America is about $850 for car insurance, with some states being higher and some lower. Many Americans blindly pay whatever premium their auto insurance brokers tells them to pay without taking the time to compare car insurance prices. However, by checking your policy at least once a year and making some adjustments, it may be possible to reduce your premium and get the best car insurance rates.- Reduced Coverage: That older vehicle may not need full coverage. Consider dropping the comprehensive coverage on the old rust bucket.
- The Deductible: If you have a low deductible, try raising it. The higher the deductible, the lower the premium. If you are currently paying a $200 or $250 deductible, raising it up to $500 or $1000 can save up to 40% on comprehensive and collision coverage.
- Good Credit: The better your credit score, the more likely your insurance company is to give you a cheaper premium.
- Drive Less: Many insurance companies offer low mileage discounts. The less you drive, the cheaper your insurance gets.
Home Owners Insurance Coverage
Homeowners insurance is essential to protecting your investment. You may be able to save a little extra while still protecting your home.
- The Deductible: Even with home owners insurance, raising your deductible will help lower your monthly premium as much as 25% per year.
- Security: Install an alarm system. Not only will it help protect your home from predators, but it can also earn you a discount on your insurance coverage.
- Energy Savings: Many insurance companies offer discounts for upgrading to energy saving devices like storm windows and appliances. Companies also may offer discounts for updating things like the electrical or plumbing. Ask your agent about these types of discounts.
Saving on Both
Aside from the things you can do to save some money based on the type of insurance, there are some things that can be done to help save money with home and auto insurance companies.
- Research: Don’t settle for what you think is the best price. Shop around. Get several quotes and compare similar coverage before settling on one company.
- Group It: Often you can get a discount by combining your home and auto insurance companies.
- Loyalty: Some companies offer loyalty discounts to clients who have been with them long term.
- Pay It Off: Regardless of the type of insurance, a finance fee is almost always added on to monthly payment plans. Instead, pay the premium in full up front and save on those extra charges.
- Umbrella: The umbrella policy is an additional coverage that doesn’t cost much but can save you a lot in the end. It’s usually no more than $300 a year and picks up where your auto and home insurance leaves off.
