Shop Around
One way you may be able to reduce your monthly insurance payments is to shop around and try and find a better deal than you already have. Due to the fact that the insurance industry is a cutthroat business, meaning insurance companies are exceedingly competitive, they are always looking to find a way to make a better offer than their competitors.
The best way to find a company willing to provide you with the same coverage you’re getting now, but at a better rate, is to spend some time and shop around. By doing so you may be able to find a carrier that will save you some money. One of the best ways to do that is to go online and gather some insurance quotes for comparison. Then you can begin calling traditional insurance companies and tell them what kind of deal you presently have, and then mention the prices you’ve already been quoted. You may be able to come away with a better price for comparable coverage.
Take On a Higher Deductible
It is a standard practice within the insurance industry to lower your premiums if you take on a higher deductible. Keep in mind that raising your deductible will mean that if you have to file a claim you will have to come up with that amount before your insurance will kick in. If you raise your deductible, your monthly premiums will certainly drop. It would be a good idea to take the difference in those premium payments and open a savings account in your bank. The money in that account should be designated for emergency use only. You will have to make sure you don’t touch that money so it will be available in the event you have to file a claim. In the meantime it will be collecting interest.
Make Improvements to Your Home
By making improvements to your home, you can slash your homeowner’s insurance costs. Installing new siding or a new roof will not only save you money on your insurance payments but it will also improve the curb appeal of your home, which could be important if you ever decide to sell. If the roof and siding you install are deemed ‘storm resistant’ it will lower your costs even more, because the insurance company will regard them as attempts to cut down on potential storm damages.
Improve Home Security
At the same time you install a roof and siding on your home, it may be a good idea to improve your home’s security system. By putting in new safety approved windows and doors the security of the home will be upgraded, and your insurance payments will go down commensurate with the enhancements. That’s because the insurance company will reward you for improving your home’s security. Another security advancement that will lower your insurance payments is the installation of motion detectors that illuminate walkways. If you install a burglar alarm it will also reduce your payments, especially if it is a system that rings into a police station.
Drive an Economy Car
Instead of driving a huge SUV or luxury car, trade it in on an economy car. The smaller and more fuel efficient a car is the less your insurance premiums will be. The reason is that the car will cost less to repair or replace if you’re ever in an accident or the vehicle is stolen.
Lower Insurance Coverage
A surefire method of lowering your insurance premiums is to lower your insurance coverage. Although it may not be the best way to reduce your monthly premiums, it will do so. If you decide to take this route you will need to make sure you have cash on hand to handle an emergency situation. Setting aside a portion of your paycheck and putting it into a savings account that is to be used for emergencies only could help defray the costs if you do have an accident. Of course this method will not only reduce your costs, it will also remove the ‘peace of mind’ that insurance coverage supplies. This method is recommended only for those individuals who have the will power to save money for emergency purposes.
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