Many consumers stick with the same insurer for years, assuming loyalty will be rewarded. However, insurers often increase rates over time, assuming policyholders will not take the time to shop around. The best way to secure lower rates is to compare policies annually from multiple providers using online comparison tools.
Use insurance comparison websites like Policygenius, The Zebra, or Insurify to compare quotes instantly.
Most insurance providers offer multi-policy discounts when you bundle multiple policies together, such as auto and home insurance. This can lead to savings of 10-25% on your premiums.
Ask your insurer about bundling discounts for home, auto, and life insurance policies.
Your deductible is the amount you pay out of pocket before your insurance kicks in. By opting for a higher deductible, you can lower your monthly premium payments significantly.
Raising your car insurance deductible from $500 to $1,000 could save you up to 40% on your premium.
Many insurers use credit-based insurance scores to determine premiums. A higher credit score can lead to lower insurance rates. Improving your credit score by paying bills on time and reducing debt can help cut insurance costs.
Check your credit report regularly for errors that could be negatively impacting your score.
Insurance companies offer numerous hidden discounts that many policyholders don’t utilize. Some common discounts include:
Safe driver discounts for accident-free records.
Good student discounts for young drivers with high grades.
Loyalty discounts for staying with the same insurer for a certain period.
Safety feature discounts for having airbags, anti-theft devices, and home security systems.
Filing multiple small claims can result in higher premiums over time. If the damage is minor, consider paying out-of-pocket to avoid increased rates in the future.
Use insurance for catastrophic losses rather than minor repairs to keep your premiums low.
An independent insurance agent can help you find the best policy at the most affordable rate. Unlike agents tied to a single provider, independent agents work with multiple insurers to find you the best deal.
Choose an agent who represents several insurance companies rather than just one.
Life changes such as marriage, a new job, or paying off a loan can affect your insurance needs. Reviewing your policy annually ensures you are not overpaying for unnecessary coverage.
Remove unnecessary coverage (e.g., roadside assistance you no longer need) to lower costs.
A clean driving record can substantially reduce auto insurance premiums. Some insurers also offer discounts for completing defensive driving courses.
Check if your insurer provides a discount for taking a defensive driving course.
If you drive infrequently, usage-based insurance (UBI) can help save money. These programs track your driving habits using telematics and reward safe, low-mileage drivers with lower premiums.
Ask your insurer about UBI programs like Progressive’s Snapshot or State Farm’s Drive Safe & Save.
Saving on insurance doesn’t mean compromising on coverage. By implementing these proven insurance hacks, you can cut costs, maximize discounts, and ensure you’re getting the best value for your money. Stay informed, review your policy regularly, and always shop around to find the best deals.