Five Tips For Saving Money On Insurance

Customers are constantly looking for ways to save on insurance while maintaining the protection that they need. By following a few tips, customers will find multiple ways to save on all types of insurance.

Ask For Discounts

Many people who are members of a group have opportunities to save money on many types of insurance. These discounts exist because when a large group, such as a teacher’s union, all purchases insurance from the same provider, the risk for the insurer is spread over a larger pool of policy holders. In addition to group discounts, policy holders should inquire about other possible discounts. Teen drivers, for instance, may be eligible for discounts for good grades or for taking driver training courses. Homeowners may receive discounts for installing home security systems or for upgrading antiquated electrical wiring or heating equipment. Buying multiple types of insurance from the same provider often results in what insurance companies call a multi-line discount. For every type of insurance, discounts are only an inquiry away.

Take Care Of Your Credit

Most insurers look at a policy holder’s credit score when setting premium. This occurs because research indicates that people with lower credit scores tend to file more claims. Drivers with a low credit score, for example, file 40 percent more claims than people with higher credit scores. Credit checks apply mainly for auto and homeowner’s insurance at this time, although they may become a consideration for life and health insurance in the future. Therefore, maintaining a high credit score will help customers to keep their insurance costs low.

Take Care Of Yourself

When people maintain good physical health, including keeping their weight in a normal range, they will receive better rates on both life and health insurance. Drivers who protect themselves by driving the speed limit and using caution on the road will have fewer accidents, which will keep their rates low. In many areas of life, including insurance, responsibility pays.

Raise Your Deductible And Drop Unnecessary Coverage

A higher deductible will yield lower premiums, which will save customers money as long as they maintain sufficient savings to pay that higher deductible. Also, dropping unnecessary coverage will mean lower premiums. For example, dropping comprehensive and collision coverage for older cars will help car owners to save a significant amount of money.

Shop Around

The best way to save money on insurance is to shop around. An employer may offer a health insurance plan, but employees should always check to see if they would save money by purchasing an individual policy. In some cases, online insurers offer lower rates because they have lower overhead costs. At the same time, policy holders must remember to compare services in addition to the rates that are displayed by agents or websites. A company with a good reputation may be worth a slightly higher premium.