Costs seem to be on the rise everywhere – insurance coverage is no exception. Discover a few tips on how to get lower insurance premiums.
Have you recently seen a rise in your policy cost despite not having had a claim? If so, you’re not alone. Insurance premiums are tied closely to costs of labor, building materials, and medical care. As these prices are on the rise, the costs to treat injuries after an auto accident or to repair or replace your home, car, and/or belongings also increase.
But, it’s not entirely out of your hands, as there are lots of tips out there that may work alone or in tandem to bring your costs down. With the help of The Cincinnati Insurance Companies, here are a few things to consider when trying to lower your insurance costs.
SEEK GUIDANCE FROM AN INDEPENDENT AGENT
Prices and coverage vary from company to company, so consider your options. But, don’t shop by price alone, as coverages and service are the most important factors. Seek out the professional expertise of an independent agent who represents a variety of insurance carriers and can help you find options that best fit your needs. Read more about how an independent agent stands out.
CONSIDER HIGHER DEDUCTIBLES
Deductibles are what you pay before your insurance policy kicks in for a covered loss. By being willing to take on a higher deductible, you can lower your premium costs, sometimes substantially. When you choose a higher deductible, be sure you have enough money set aside to pay your deductible in the event of a claim.
KNOW THE INSURANCE COST PRIOR TO A NEW PURCHASE
Buying a new home or auto? It’s important to factor in how much the insurance is going to cost. Not all homes and auto insurance will be priced the same. Some autos are safer, have lower repair costs, or have a lower rate of theft – factors that can affect the insurance premium. Two homes for sale at $250,000 might not cost the same for insurance, either, if one was built with materials that are now outdated and could increase the replacement cost for the insurer.
BUY YOUR INSURANCE THROUGH ONE COMPANY
Most carriers offer discounts for placing all your business with them. This can be more cost-effective than having your home and auto written through separate carriers. It can also be helpful to have one agent handling all your policies to make sure there are no gaps in your coverages.
PROTECT YOUR HOME FROM POTENTIAL CLAIMS
Do you have a home security system, backup generator, automatic water shut-off system, or other feature that makes your home less likely to have a big claim? Make sure to discuss your home’s protective features with your agent, as there may be a credit for being a better risk.
REVIEW YOUR POLICY AT LEAST ONCE A YEAR
Life moves quickly, and things can change from year to year. Are your policy limits still adequate for your lifestyle? Have you purchased big-ticket items throughout the year? it’s important to review to make sure your policies are up to date and not missing that new car you swapped out a few months ago, the basement you finished out or the new jewelry you received as a gift.
INVESTIGATE POSSIBLE DRIVER CREDITS
Talk to your agent about how your household has changed in the last year. Did someone take a driver improvement course? Has your daughter gone to school without her auto? Maybe your son has earned good grades. Check with your agent to see if your insurer offers credits for these items.
At the end of the day, cheaper isn’t always better. But, that also doesn’t mean you need to pay for more than you need or bypass discounts you qualify for. If you’re in the greater Rochester, NY area, we invite you to contact the Feltner Group to talk through your specific situation. As independent brokers, we work for you, not the insurance companies, and are dedicated to helping you learn how to get lower insurance premiums while still getting you the best possible coverage.