5 Ways to Save Money on Insurance

By: Matthew Bacon

If you own a house or a car, insurance is a must. It can protect you in case of damage or an accident and will ensure that you have the money to start over, whether that means buying a new car or rebuilding your house. Most people who have insurance never need it, but it’s essential to have it in case you ever do.

Insurance isn’t cheap: depending on the coverage you opt into, it can be very expensive. But there are some things that you can do to save money on both your home and car insurance:

1. Shop around.

Whether you’re looking for insurance for a new car or a new house, don’t just go with the first company that you come across. Do some comparison shopping so you know you’re getting the best price. If you find a company you like but they aren’t offering the best deal, ask them what they can do for you. Sometimes if you present them with a cheaper, but comparable package from another company, they’ll match the price to get your business.

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With both car and home insurance, there is a certain amount that you have to pay out of pocket when filing a claim. This deductible is usually $500. If you can afford it, increasing your deductible will lower the cost of your insurance bill (whether you pay it monthly, quarterly or annually). In fact, if you can increase your deductible from $500 to $1,000, you can lower your insurance costs by up to 25 percent. But it’s important that you are able to pay the deductible. If you increase  your deductible but can’t cover it in the event of damage or an accident, then your insurance company won’t pay on your claim.

3. Go with the same company for your home and car insurance.

If you get your coverage from the same company, you will be able to get both at a slight discount, usually between 5 percent and 15 percent. If you opt into life or business insurance with that company, the discount could be even greater. But make sure that you still shop around: you don’t want to sign on for the discounted insurance if you could have gotten it cheaper elsewhere.

4. Price insurance before buying the car.

Different cars will have different insurance costs. For example, sports cars and high profile cars will have a higher insurance premium while models that are known for their safety and durability will cost you less in insurance for the same coverage. So always check in with a few insurance companies before you make your purchase and make sure you can afford the insurance in addition to the car.

5. Get coverage for rebuilding only.

The cost of rebuilding your house may not be as much as you paid for it. After all, when you purchased your home, you were also buying the land on which it sits. If something happens and you need to rebuild your home, you won’t need to repurchase the land. When deciding on how much coverage you need for your home, make sure to factor in this consideration. The more coverage you have, the higher your premium. You can save some money by just focusing on rebuilding costs, not how much you paid for the house.

Just because you have to have car and home insurance doesn’t meant that you have to pay through the nose for it. Knowing ahead of time how much insurance you need will help you when you are shopping around and comparing packages offered by different insurance companies. Doing your homework will help ensure that you get the coverage you need at the best price possible.

Matthew Bacon is a freelance writer for an auto insurance company.  When he is not writing about car insurance, he enjoys writing about other automotive topics such as racing and repair.

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5 Ways to Save Money on Insurance was originally featured on Quizzle Wire

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