Even though there isn’t much you can do to change where your home is or how it is built, the main factors that affect your insurance rates, there are still quite a few ways you can save some cash on your policy. Rather than simply digging around for budget insurance, which can often be misleading as the rates are not necessarily lower, you just get less coverage, you are better off searching for discounts on policies from more reputable companies.
There are quite a few situations in which an insurer will offer some nice discounts so that you get all the benefits of great coverage while the premiums will rival those of any budget insurance policy.
Right Place, Right Person
You would be surprised that the location of your home could net you a fair discount on your homeowner’s insurance policy, but that is because most insurers do not openly disclose the discounts they offer and you need to ask. If your home is located in an area where statistically there are low payout rates, in other words what would be considered a low risk zone, you would be considered a desirable prospect for an insurer. So make sure you ask your insurer about discounts for low risk areas.
Similarly, by belonging to certain groups you may find you are eligible for substantial discounts. For example, senior citizens will often receive discounts because they are considered low risk as they are home much more than someone who is still working, thus reducing the risks of something happening because they were not home. Also belonging to associations such as the American Automobile Association can net you significant discounts. All you need to do is enquire with the association you are part of if you are eligible for any discounts and you may find you don’t need to shop around for budget insurance.
Secure Your Home
The more secure and protected your home is, the less risk you present for an insurance company. In fact, by installing a central alarm system you can get discounts ranging from 15 – 20 percent on your annual premiums. You will be making a long term investment that also raises the value of your property and increases the protection of your assets, which you will be able to amortize from the savings on your insurance policy.
Look at Your Deductible
The level of your deductible can also net you some nice discounts so that your current premiums may end up lower than anything a budget insurance policy can offer. The advantage is that you don’t need to make substantial changes to the deductible because simply raising it from $250 to $500 can lower your annual insurance costs by 10% and if you go to $1,000 you can save a further 10 percent.
Combine and Save
Some insurers will also offer a significant discount if you buy all of your insurance from the same company. You can get a discount ranging from 5 – 10 percent just by purchasing your auto insurance policy and your homeowner’s insurance from the same insurer.
You may find that your premiums will be much lower than anything you could get from a budget insurance policy while you still benefit from great coverage. Remember, though, that insurers prefer not to publicize all of these facts and that you will have to ask outright.