You can control some aspects of your insurance costs. Your independent agent can help.
Insurance premiums are rising, as are grocery and gasoline prices. Especially if you don’t have a claim, you may wonder why the cost of your policy has gone up.
Insurance premiums are closely linked to the cost of labor, building materials and medical care. As these costs rise, so do the costs to treat injuries after an auto accident or to repair or replace your home, car and belongings.
Another reason for rising premiums could be the number of claims on your policy. When losses are high, the risk may be higher than estimated, and premium adjustments may be required to offset the increased risk accepted by your insurance company.
If you’re looking for ways to lower your insurance costs, you have some control:
Get guidance from an independent agent
Prices and coverage vary by company, so consider your options. But don’t shop by price alone because coverage and service are the most important factors. Find the expertise of an independent agent who represents a variety of insurance carriers and can help you find the options that best fit your needs. Read more about how independent agents are different.
Consider higher deductibles
The deductible is what you pay for covered losses before your insurance policy begins. By being prepared to take on a higher deductible, you can lower your premium costs, sometimes significantly. When you choose a high deductible, make sure you have enough money to pay your deductible in the event of a claim.
Know the cost of insurance before buying a new one
Buying a new home or auto? It is important to consider how much the insurance costs. Not all home and auto insurance will cost the same. Some autos are safer, have lower repair costs or lower theft rates – factors that can affect insurance premiums. Two homes for sale for $250,000 may not be worth the same to insure, either, if one is built with materials that are outdated and could increase replacement costs for the insurer..
Buy your insurance through one company
Most carriers offer discounts for keeping all your business with them. This can be more cost effective than writing your home and auto through separate carriers. It can also be helpful to have an agent manage all of your policies to ensure there are no gaps in your coverage.
Protect your home from potential claims
Do you have a home security system, backup generator, automatic water shut-off system, or other feature that makes your home less likely to have a big claim? Be sure to discuss your home security features with your agent, as there may be better risk credit.
Review your policy at least once a year
Life moves fast, and things can change every year. Are your policy limits still adequate for your lifestyle? Have you bought big-ticket items throughout the year? It’s important to review your policies to make sure they’re up to date and aren’t missing that new car you traded in a few months ago, the basement you finished, or the new jewelry you got as a gift.
Check potential driver credits
Talk to your agent about how your home has changed in the last year. Has anyone taken a driver improvement course? Has your daughter gone to school without an auto? Maybe your son got good grades. Check with your agent to see if your insurer offers credit for these items.
Cheaper isn’t always better, but you don’t have to pay more than you need to or miss out on discounts you’re entitled to.
The coverage described here is in the most general terms and is subject to actual policy conditions and exclusions. For actual coverage terms, conditions and exclusions, refer to the policy or contact your independent agent.