8 Ways To Lower Your Insurance Premiums

If you're watching your budget, you're probably looking for ways to save money anywhere you can. Some parts of your budget seem more flexible, such as restaurant expenses, while others, such as insurance, may seem less likely to change. It is possible, however, to lower your insurance costs. Here are eight ways.

1. Go Insurance Shopping

The price of insurance can vary from business to business. It's worth the effort to get several insurance quotes. Browse websites or call companies directly. Your state insurance department may also have resources to help you compare prices.

Some companies have agents who sell their products, while others work with you directly online or on the phone. You can also find independent agents who work with several insurance companies. They can offer the advantage of providing you with a variety of companies to choose from. You can work with them to combine companies if necessary to get the best deal.

While you want to lower your costs, price is not the only factor to consider. Make sure you get the right value for your money. Check company reviews or ask friends and family for recommendations. Cheap insurance that doesn't meet your needs ends up costing you more in the long run.

2. Raise Your Deductible

Your deductible is the amount of money you spend before your insurance starts paying for a claim. The higher your deductible, the more you pay out of pocket before receiving insurance compensation. Higher deductibles also mean you pay lower monthly premiums. Ask your agent about raising your deductible. This is an excellent strategy for saving money, but you should make sure you have the deductible amount on hand in case you have a claim.

3. Purchase Home and Auto Insurance From the Same Company

Many insurance companies offer discounts if you purchase your auto and home insurance from them. If you currently have separate insurance companies for these products, ask about discounts for bundling.

In some cases, however, you can save more money by using two different companies. It's worth investigating prices before making a move to a single insurance company.

4. Compare Insurance Costs for New Cars

If you're in the market for a new vehicle, check first with your auto insurance company. Different makes and models can vary in insurance costs. Companies set their rates according to a car's safety record, price or likelihood of being stolen. It's no surprise, then, that a luxury sports car costs more to insure than a sedan with a strong safety record. Some safety or anti-theft features can save you money on your policy, so be sure to mention them to your agent.

5. Quit Smoking

While insurers are not allowed to raise rates for their customers' gender or health conditions, they can still raise rates for smokers. In some cases, you may pay up to 50% more if you smoke. Invest in smoking cessation classes to save insurance money (and improve your health) in the long run.

6. Use In-Network Physicians

Using out-of-network healthcare providers can mean you pay a lot more for your healthcare. When possible, choose doctors in your insurance network. Ask for references if you need to switch doctors.

7. Keep a Good Credit Record

Studies have shown that people who have a solid credit history also have fewer claims. Many insurance companies use this data to guide their rates. If you need to improve your credit score, do your best to pay bills on time, keep your credit card balance as low as possible and don't have more available credit than you need.

8. Make Home Improvements

You may be able to lower your home insurance costs by upgrading your plumbing and electrical systems, replacing an old roof or installing disaster-resistant windows. Ask your agent if these improvements can lower your premiums by protecting your home from damage.

Shopping for insurance can be a lot of work, but you can potentially save money and help your bottom line. Doing some research now can improve your budget for the future.