Introduction
Keeping your home insurance costs
down is something that everyone should be able to do, regardless of the value
of their home. You'll save money in the long run, but here are a few quick tips
to keep in mind when it comes to keeping your home insurance costs down.
Homeowners' insurance can be an
expensive proposition, and it's easy to rack up a hefty bill both in terms of
the premiums themselves and the deductible amounts you need to pay before your
policy kicks in. Keep reading for ways to keep your home insurance costs down
so you don't have to worry about spending all your hard-earned cash.
Increase
your deductible
Your home insurance deductible is
the amount you pay out of pocket before your insurer will pay any claims on
your policy. It's a way to make sure that if something goes wrong, you won't be
left with the bill.
If you have a large deductible, it
could cost you less money in premiums than if you had a smaller one. However,
if something goes wrong and your insurer doesn't cover the full cost, you'll
still have to pay the deductible out of pocket.
To find out how much it costs to
increase your deductible, add up all of your yearly expenses for home repairs
and replacements and divide that by 12. Then multiply that number by four.
That's how much it would cost to increase your deductible by $500 each year for
five years.
Shop
around
Before you buy your home insurance,
shop around
Before you buy your home insurance,
shop around. You may be able to get a better deal by comparing quotes from
different companies.
Get a quote online or over the
phone. Shop around for the best coverage at the best price. Compare the costs
of the policies offered by several companies so you can get a good idea of how
much your premiums will cost.
Ask friends and family members what
they’re paying for their homeowners insurance, and then compare that
information with what you’re paying now. You may find that you can save money
by switching carriers or adding more coverage.
Consolidate
your policies
It's easier than you think to save
money on home insurance. Here are the top five ways to cut your premiums:
Consolidate your policies. If you
have multiple policies with different deductibles, it's time to get them all
under one roof. Consolidation is free in most cases, and can save you hundreds
of dollars per year on homeowners' insurance.
Shop around for coverage. If you're
not sure what kind of home insurance is best for your situation, shop around
for quotes from multiple companies. Compare their rates and see if there's a
better deal out there. You can also compare quotes from different insurers
online at sites like InsureMyChoice or InsureMyRide (both are affiliate
partners).
Lower your deductible. The higher
the deductible, the less likely the insurer is to pay out when disaster strikes
— so lower your deductible as much as possible so that it covers more of the
bill when disaster strikes.
Drop coverage types that aren't
needed anymore or aren't cost-effective enough anymore (like flood insurance).
Floods happen less frequently than they used to but they could still cause as
much as $1 billion in damage every year in the U.S.
Ask
about discounts
Ask about discounts.
The first thing to do if you want to
lower your insurance premiums is to ask your insurer for a discount. The best
way to do this is by calling the company and asking them to reduce your premium
by 10% or more. You might be able to get a better deal than that, but it's
unlikely that you'll get any kind of special discount for being a good
customer.
The second step is to look at how
much you're paying for insurance right now. If you're paying more than $500 per
year on car insurance and $250 per year on homeowners insurance, then it's time
to shop around. Asking around might not always work, but it should get you
within $50 per year of what you're currently paying.
Stay
claim-free
If you have a claim, your insurance
company will look for ways to lower your premium. For instance, if you're a
high-risk driver and have been in a car accident recently, your premiums will
likely be higher. To avoid increased premiums and still keep your coverage,
consider the following:
Stay claim-free
Don't try to fix the damage yourself
when you don't need to. If you can't afford to pay for repairs, ask your
insurer for help or turn to an insurance company's approved list of
contractors. Most insurers will pay up to 90% of the cost of repairs if they're
done by an approved contractor.
Keep mileage low
The average American drives about 15
miles per day, so it's important to keep driving at or below this level (even
if you don't drive that much). Driving less than 10,000 miles per year
increases the odds that your car will be totaled and can make you ineligible
for some discounts on liability insurance.
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