1. Match your coverages to your specific needs. Insurance is not one size fits all. Have your agent explain each and every coverage that you are paying for. Use this information to help determine if your coverage fits your circumstances.
2. Insist on Annual Reviews with your Agent. As your life changes from year to year so does your insurance needs. Visiting your insurance agent and reviewing your coverages along with your costs is an excellent way of staying informed and keeping your costs down.
3. Comparison shop. Each insurance company use different risk models to determine your annual premium. Your risks will change from year to year along with insurance companies risk models. Have your local independent agent shop different carriers for you each year at renewal time.
4. Bundle your coverages. Most insurance companies give big discounts for having all of your insurance with one carrier. Most people know about the home and auto discount, but did you know that some carriers offer extra discounts for having life insurance or an umbrella policy with them?
5. Increase your deductible. It’s not an uncommon thing for me to see an auto policy where the person has never had a claim but yet has a zero deductible. This is like paying the insurance company a bonus for never filing a claim. Self-insure yourself for as much as you can comfortably afford.
6. Maintain good credit. I don’t necessarily agree with the practice, but insurance companies today are using your credit score as a way of determining the likelihood of you filing a claim. Keep your credit in good order and this will help to keep your insurance costs down.
7. Safety Safety Safety. Insurance companies give discounts for safety devices and features. Safety features and ratings with vehicles can reduce your auto insurance premium. Smoke detectors, CO2 detectors, and Burglar alarms can help to lower your homeowner’s insurance premiums.
8. Low Mileage Savings. Your auto insurance rates are partially based on the distance that you drive your vehicle each year. Check with your local independent agent to make sure that they have your correct annual driving miles.
10. Senior Discounts. The older we get the less risks we tend to take which may not be real exciting, but it can lead to savings on our insurance. Most companies offer some type of senior discount, call you agent and find out when you can take advantage of this discount.