Insurance can be a big part of your family's monthly budget. Car insurance, home insurance, life insurance, health insurance—they all add up. That's why it's important to look for ways to save on rates (while not reducing coverage) whenever possible. Here are the top five places to start looking for savings:
1. Buy Only What You Need. If you shop for insurance online, you have to
select your own coverage amounts. Most people will simply pick whatever they have had in the past. This can work out, but it can also have you paying for way more coverage than you actually need, or worse, leave you with not enough.
By working with a local insurance agent, you have someone available to look at your personal situation and advise you of what each coverage means and why you need it. You only purchase the insurance that is necessary for your family and save money in the process.
2. Multi-Policy Discounts. One of the biggest ways to save on insurance (sometimes more than 20 percent), is by keeping all of your policies with the same company. Insurance companies reward policyholders by discounting their coverage when they keep their auto and home policy together.
Talk to your company and compare multi-policy discounts with other companies to find the best deal. This is by far the easiest way to immediately slash your rates.
3. Do Your Research. We all know that you can call around to a million different companies for quotes in order to save, but there is something even more effective when it comes to keeping your rates low. Talk to your agent before you buy a new car or home.
Insurance rates vary widely on vehicle makes and models. One vehicle could cost hundreds more in insurance than another very similar model. Same thing applies to homes. Your zip code, roof materials, square footage, and other details all play into the rates you pay.
By doing a little research before signing the papers, you can dramatically lower your insurance costs. Call your agent and compare the rates on your favorite vehicles before you buy!
4. Teen Drivers. Teen drivers are more expensive but they don't have to break your budget. Many companies offer a large variety of discounts aimed at students. If you have a teenage driver, ask about discounts for good grades and driver education. Also, find out what kind of vehicle will be the most inexpensive to purchase for your teen. (Although, it's probably not that sports car they have their eye on.)
5. Buy Early. When it comes to life insurance, the easiest way to cut your costs is to buy at a young age and quit smoking. Life insurance rates are determined in part by your current age, so every time you have a birthday, your rate goes up. It's much better to lock in to those low rates early and save thousands of dollars over the life of your policy.
Insurance costs can be a large part of your budget, but by following these guidelines, you can make sure that you're getting the most coverage for your dollar.
Steve Tovmasyan is a licensed insurance agent, financial planner, and owner of CedAni Ins Agency - Allstate located in Eagle Rock, CA. Call us today 323-776-3355 or email: Cedani@allstate.com