How To Get Lower Insurance Premiums

The best way to save on insurance is to lower insurance premiums. Here are a few keys to lowering your premiums and slashing your monthly insurance bill.

Saving money is important to all of us, and there are many different money saving strategies that can be employed.

One strategy is to save money on some of your fixed expenses like your insurance.

What are some of the things you can do to lower your premiums without having to reduce the amount of existing coverage you have and need?

Listed below are five keys ways to lower insurance premiums and save you some money on insurance.

5 Key Ways To Lower Insurance Premiums and Save Money On Insurance

Credit Score Is Important

Just like anything else in life, you can save money by having great credit. Your insurance premiums are going to factor in your ability to pay your bill each month. The amount you pay each month is going to be inverse to your credit score. The higher your score the lower your bill, but the lower your score, the higher your bill.

How Much Of A Risk Are You?

You can lower insurance premiums simply be making yourself a lower risk to file a claim. If you smoke you should quit and if you are applying for car insurance you should make sure you haven't had an accident recently. When an insurance company sees that you are less likely to file a claim, they will make you pay less for your insurance.

Deductibles Matter

Do you have a low deductible on your insurance plan? If so, you could be paying more each month in premiums. The deductible is the amount that you would have to cover yourself. For example, if your glass deductible on your car was 200 dollars, you would have to cover the first 200 dollars in losses.

If you raise that deductible amount, you can save money each month with lower insurance premiums. Be careful that you don't go overboard just to save each month, you want to be sure you are still adequately covered.

Pay In Full

Paying in full will usually result in having saving money over the term of the coverage which can be anywhere between 6-12 months. Usually there will be fees applied to each installment payment that you make. By paying for the entire thing at once, you can avoid these fees. You can usually save up to 10 percent if you pay in full.

There are some exceptions like in the case of renters insurance where you don't get hit with installment fees if you pay by check.

Bundle Your Insurance

A lot of insurance companies will have deals where you can get a discount by bundling your car, life and homeowners insurance into one policy. The savings usually equals about 20 percent of the price you would pay for all three of the policies individually. It is also easier to have one company handle all your claims too, so this could be a really easy way to save money on insurance.

Overall, there are many different ways to lower insurance premiums and save money. A good credit score and being a low risk for a claim are the two best ways to guarantee that you save money each month. However, don't overlook bundling your policies or just paying in full as ways to save money as well. Every dollar is important, so make sure you are not overpaying.

^ Back to top of How To Get Lower Insurance Premiums

< Return to Money Saving Ideas Home page