The following is a guest post. If you are interested in publishing a guest post with this site, please see my guest post policy. Noel Finley works for Medicare Supplemental Insurance.net an informational website that has numerous articles about health insurance premiums.
For many, insurance is a necessity for peace of mind and assured quality of life. However, it can be quite expensive. This leaves many searching for ways in which they can lower their insurance premiums over time in an effort to save some money. It can be surprising how often those that purchase insurance will continue to pay the same rates over the course of years without looking into the basic steps that they can take to lower their insurance premiums.
Lower insurance premiums with multiple policies at the same company
The simple and most effective way in which you can save money on your insurance premiums is to bundle several different policies with the same company or insurance agent. By purchasing your home, car, and health insurance from the same company, depending on the policies of that company, could make you eligible for large discounts that can drastically lower your premiums. You should inquire with companies about this specifically before making widespread changes to your insurance policies with other companies.
Lower insurance premiums by improving your home for home insurance savings
The prices of home insurance are directly related to the risk that a company is taking on when they insure your home. When your home has certain risks associated with it, such as old wiring or being located in a flood zone, you can expect to pay a great deal more money for insurance. However, the more risks that you are able to minimize or mitigate, the better chance that you will have to receive a discount from your insurance company. For instance, replacing old, faulty wiring can lessen the risk of electrical fire, and make you eligible for a discount with many companies. The same can be said for updating old piping, and also repairing or updating your roof to lessen the chance of leak damage.
Good grades lessen car insurance policies
If you are a student, or have a child on your policy that is still in school, sending a copy of the school transcript to your insurance company can qualify you for lower premiums. This is because typically students that receive bad grades are, statistically, much more likely to get into car accidents and generally drive unsafely. Students with good grades have been statistically shown to not have those same problems, which is why many car insurance companies allow you to receive a discount when you have proof of good grades in school. Typically, faxing the company your transcript will be enough for them to grant you a discount on your policy.
Be more mindful of necessary coverage
Take a look at your policy and see if you are paying for coverage that you do not require. For instance, many insurance agents will attempt to upsell a variety of different coverage packages to you that you may not actually need, which can end up costing you a great deal of money that you do not need to pay. They may attempt to sell you flood insurance when you are not in any type of flood zone, or attempt to upsell you on a longer policy term than you might actually need. Make sure that you are researching every detail of the policy in order to ensure that you are not paying for types of coverage that you do not need.
Raise your deductible
Another quick, yet effective way to lower your insurance premiums is to raise your deductible. In a study that was conducted by the Insurance Information Institute, they found that raising your average deductible from $500 to $1000 would often result in a 25% reduction in your premiums. If you can afford to handle small payments, whether it be for home repair or medical treatment, raising your deductible allows you to keep your insurance policy in tact while securing lower premiums overall.
What ways have you found to save money on your insurance costs?