1. One Insurer, Multiple Policies – Do you have an auto insurance policy? If so, is it with the same insurance company that provides your homeowners protection? If the answer is no, then you are most likely paying too much for both policies. Almost every company that offers homeowners wants its policyholders to also buy auto insurance from them. To entice you to do so, most offer discounts to both policies that range from 5-15%.
2. Raise Your Deductible – Your deductible is a form of self-insurance and is the amount you pay before the insurance policy kicks in. When you agree to take on more of the risk in the form of a higher deductible, companies reward you in the form of discounts on your policy. If you currently carry a $250 or $500 deductible, you may save anywhere from 12-35% by increasing it to $1,000, $2,500, or $5,000. Throw that savings back in your pocket or use it to increase the protection your policy provides.
3. New is Better – Insurance companies love newer homes. The newer the home, the less likely any of the major systems (roof, plumbing, heating, and electrical) will contribute to a claim. Plus, the overall structure itself is in much better shape. I’ve seen discounts up to 15% if you live in a home built in the last 10 years.
4. Location, Location, Location – That is an old real estate saying that also equates to your insurance premium. Where do you live and what is your home made of? If you live in an area prone to windstorms, a brick home is better. If you live in an area with higher risk of earthquake, a frame home is better. Live next to a fire station? Great, you are paying less than someone living further away.
5. Better Safe(r) Than Sorry – Smoke detectors, deadbolt locks, and fire extinguishers are usually worth discounts of at least 5%. Bigger discounts are available if you install a monitored
fire or burglar alarm system. However, the alarm companies tend to exaggerate the discounts you receive. It is best to check with your insurance provider before you invest in the alarm to verify the savings your policy offers.
6. Where There’s Smoke… – Smoking (unattended cigarette butts, etc.) produces more than 23,000 residential fires in this country each year. That’s why some insurers now offer discounts if all members of the household are non-smokers. If you qualify, check with your provider to see if they offer this discount.
7. Group Discounts – Some companies offer discounts to policyholders in certain occupations, business associations, and alumni associations. Ask the director or President of any association you belong to if they are aware of any discounted insurance programs available. In my area, simply being a member of the Chamber of Commerce can get you a 5% discount on all your policies.
8. Don’t Jump Around – Don’t get me wrong, it makes sense to shop around once and a while to make sure you aren’t paying too much. However, it sometimes makes sense to stay where you are. In some insurance programs, discounts are automatically applied to policyholders who have been with a company a certain number of years. I have seen them kick in as early as year three with one company. If you are looking at making a change, make sure you aren’t throwing away a 5-10% discount.
