5 Steps to Lowering Your Insurance Rates
The following are a few ways to lower rates on all of your insurance policies, such as health, auto, life, and homeowners, among others:
- Choose a high deductible. The premium for a policy that pays for all your expenses will be much higher than for a policy for which you pay the first $500 or $1,000. Select the highest deductible you can afford.
- Use the same insurer for all of your policies. Most insurers will offer bundled insurance packages that provide a discount for buying all of your policies from them. Many insurers also give loyalty discounts to customers who remain with them for many years.
- Avoid filing claims. Of course, if you suffer a considerable loss--if your vehicle is totaled, or your house burns down--you'll have to file a claim, but your rates will usually go up when you do. So, if you can afford to pay for the damage yourself, do so.
- Maintain a positive credit history. A poor credit score can raise your premiums, so pay your bills on time and don't use credit cards excessively.
- Don't overinsure. Do you have a big yard, but a plain house? If so, you probably don't need to insure the full value of the property, because if the house is destroyed, the land will still have its value. Do you drive an old junker? If so, don't bother with collision insurance. If you are single or a childless couple with two incomes, you might not need life insurance at all.