Ways to Save on Home and Auto Insurance
No matter how rich or poor we are, it is still worth time and money to make sure we are getting the most for our money. Insurance is not exempt. Competition is fierce in the insurance industry and consumers do well to take advantage of it. Instead of just letting your current policies renew as they are, take the time to shop around. You can do the shopping yourself. Or you can find an independent agent to do the shopping for you. Or both!
Here are a few more tips for getting the most for your money on home and auto insurance:
1. Package. Insurance companies give excellent discounts for having both policies with the same company. Combined discounts can be up to 35%.
2. Consider raising your home/auto deductibles. Some companies lower your premium enough to justify it. Some don't. Example: For the home, try this scenario: The average homeowner in Oklahoma has one claim every ten years. Let's say your home deductible is $1000. You can raise the deductible to $2000 and save $300 annually. Over the 10 year period, you are going to save $3000. If you have a claim, you have raised your exposure by $1000, so you still save $2000. But if you don't have a claim, you put $3000 back in your pocket.
3. Insurance Score. This is probably one of the least understood pieces of insurance. It's run from the credit bureaus, and it assigns a score (like a credit score), but it's based on different factors. Such as, verifying that you haven't over-extended yourself with too much debt making you unlikely to be able to pay for your insurance. Also companies want to see that you make on-time payments. On the other hand, if you pay cash for everything and have absolutely no credit, you go to the top of the heap and get the best rate. Companies understand that usually, no credit is good.