Insurance is a crucial aspect of any family’s financial plan. But the costs can add up quickly if you don’t take steps to minimize them.
Thankfully, there are numerous ways to save on home and car insurance. Some of them involve bundling policies, shopping around for premiums, and making informed financial and health decisions.
Bundling
One way to save money on home and car insurance is to bundle your policies with one insurer. This practice is common and usually results in lower premiums since most carriers provide a multi-policy discount.
Bundling discounts vary between companies and are determined largely by your eligibility requirements. On average, insurers offer a discount of at least 10% when you combine two or more policies into one bundle.
Bundling a home and auto policy could potentially result in savings of up to 25% on premiums. But first, do your due diligence.
In addition to savings, bundling your policies can also save time and effort. Many companies provide a convenient online portal or app where you can track and update your coverage from one convenient location.
Another advantage to bundling your policies is that it can help you avoid having to switch providers if you make large claims. Insurance companies may be tempted to drop you in high-risk areas if they see losses from customers with separate policies.
Shopping Additional Providers
Saving money on your annual insurance bill requires shopping around for the best rates and coverage. You might be surprised at what quality policy is available at a fraction of what others charge. Combining home and auto coverage into one package can be beneficial to both you and your wallet; the only challenge lies in sorting through all the mediocre offers. With some research, however, finding them out can be daunting.
Reviewing Your Coverage
One of the best ways to save money on home and car insurance is to review your coverage annually. Doing this ensures that the policy still covers the people and things important to you.
Changes in your life can affect both the amount and type of coverage you need moving forward. These could include changes to family status like getting married or having a baby, as well as other major life events like buying a new home, finishing a basement or making major purchases.
Here’s where an in-depth policy review with your independent insurance agent can come in handy. You’ll discover if you qualify for any additional discounts and how to maximize them.
Increasing Your Deductible
Deductibles are predetermined amounts that you must pay before your insurance company begins covering claims. Usually, this ranges from $500 to $1,000.
Increase your deductible to save money on home and car insurance policies. Although you’ll still need to cover small claims if you opt for a higher deductible, over time your premiums will decrease due to lower risk exposure.
You have two choices for deductibles: a flat rate (usually between $500 and $1000) or a percentage. A percentage deductible is set as a portion of your home’s value.
Selecting a higher deductible is often recommended, but it’s essential to plan ahead for it. Make sure you have enough savings to cover the deductible in case of an emergency. Additionally, look into large loss waivers which could save you money if there are claims made against you.