In this article, you will discover 16 simple techniques to search, compare and save money on your insurance quotes: vehicle, houses, and other types of insurance.
With a simple click you can get 10s of insurance quotes. But there are many things to consider when searching for reliable insurance policies. You are about to learn all the basics. Kindly, keep reading.
Insurance policies can seem a bit complicated at times, especially when you have no prior knowledge. Nonetheless, with a little help, you’ll be able to navigate your way and choose the right insurance policy and save as much money as possible in the process.
Here are 16 simple tips to search, compare and save on insurance quotes:
- Determine the Coverage You Want
First and foremost, you need to determine the coverage you are looking for. Buying insurance online or at any local office is like doing any financial transaction that requires a plan.
First, determine if you will buy full coverage or liability. If you don’t intend to buy full coverage, write down the list of coverage you want in your insurance policy. With this list in hand, you can shop around and compare insurance quotes, which leads us to the second technique.
- Shop Around for Better Offers
Do not think the rate charged for a policy or coverage is same for every company. You can find same policies in different agencies at different rates. Scout for competitive insurance quotes and do some research on their insurance companies.
The reputation of the insurer is very important. An insurance Company with bad reviews from customers may offer you a good quote but decline it for a more expensive quote from a reliable insurer that has good reputation.
- Bundle Multiple Insurance Policies
Most insurance companies give discounts for having multiple policies with them. It also helps for an easy claim of benefits from the insurance company.
“One of the easiest and most common ways to save money on insurance is by bundling your home and auto insurance with one company. Bundling gives you a discount when you get your home and auto insurance policies from the same insurer”.
- Ask Questions and Ask for Discount
Be sure to understand every policy before purchasing them. For policies you don’t understand, which is very likely, ask questions. A good insurance agent will happily take the time to answer any question you ask pertaining to your insurance policy.
Very few people call their company and request a discount after they receive a quote. You can ask for discounts at the beginning of the policy or after a major life event like a divorce or a shortened work commute, or as reward for being a driver, improved credit record, and others.
- Consider an Umbrella Insurance Policy
Umbrella insurance refers to liability insurance that is in excess of specified other policies and also potentially primary insurance for losses not covered by the other policies.
When an insured is liable to someone, the insured’s primary insurance policies pay up to their limits, and any additional amount is paid by the umbrella policy (up to the limit of the umbrella policy).
Contrary to what most people think, umbrella policies are fairly priced. A reliable umbrella policy can save you from disastrous events that may cause you to max out your standard insurance. It’s very good coverage for emergency situations.
- Be a Safe Driver
It pays to be a safe driver. Points are typically assessed to a driver record for moving violations. The more points you have the higher insurance premiums you will pay. You could save on average 10% on your car insurance policy if You have not been in violation accident for the past 36 months.
Some insurance companies offer more savings than that. For instance, you can save up to 30% on your State Farm car insurance with their Drive Safe & Save™ discount program.
- Take a Defensive Driving Course
The Defensive Driving Course is a four-hour online course that presents real-life driving situations and hazards. The course motivates drivers to change their driving habits and behaviors to avoid collisions and traffic violations. It helps them develop their own driving skills in order to save lives, time, and money, in spite of the conditions around them and the actions of others.
Some insurers offer discounts to drivers who have taken the course. For instance, take a defensive driving course and lower your Geico car insurance quote by up to 20%.
- Raise Your Deductible Lower Your Insurance Quotes
Raising your deductibles automatically lowers your premium costs. This only will help you reduce your insurance quotes. It’s especially beneficial for drivers who don’t use their coverage very often, especially entrepreneurs who work at home.
For instance, increase your deductible from $200 to $500 can help you reduce your collision and comprehensive coverage cost by 15 to 30 percent. If you increase it to $1,000 deductible you can save 40 % or more.
- Avoid Monthly Insurance Premiums
Most insurance companies offer the choice of paying all premium at once or spreading out the payments over each month. Whether you pay in full for a 6–month or 12-month car insurance policy, it’s always better to pay in full than monthly payments.
Most insurance policies charge extra fees for each premium payment they have to process. It is more cost-efficient to pay once every three months or yearly if possible. This could help you save 100’s of dollars on your insurance policy.
- Automatic Payment
Before you purchase the insurance policy, call the company if they offer discounts for allowing automatic. Setting up automatic payments makes bill paying easy. … and you’ll also save money on postage and checks.
Some Insurers offer a discount to clients who set up automatic payments with their checking or savings account. Just allowing the premium to be withdrawn automatically from your account, and you are good to go.
- Maintain A Good Credit Score
Having a good credit history can reduce your insurance costs. Credit scores determine interest rates and loan qualifications. Credit-based insurance scores don’t factor in your job, income history, gender, or any other personal information. Car insurance companies use them to help determine the likelihood of an insurance claim in the future.
It is estimated that drivers with excellent credit can save up to $1400 per year on car insurance premiums.
- Ask for Lowe Mileage Discounts
To take advantage of low mileage discounts, ask the company and ask for it. Some companies offer discounts to safe drivers who add lower than average number of miles per year. Low mileage discounts can also apply to drivers who car pool to work. This is also very beneficial for entrepreneurs working at home.
According to usnews.com, USAA offers the lowest representative rate for a driver profile with low–mileage car insurance, while Nationwide is the most expensive insurer for low–mileage car insurance, with a study rate that’s more than $1,000 higher each year than USAA.
- Reduce Coverage on Old Vehicles
Older cars can be cheaper to insure than their newer counterparts, but it also depends on the make and model. Old Cars made abroad and requires expensive replacement parts have a bigger impact on insurance premiums than age. If you have vehicles with low appreciation, you can drop collision and/or comprehensive coverages on them. For instance, if your car is worth less than 10 times the premium, purchasing the coverage may not be cost effective.
You can determine what your vehicle is worth by asking your auto dealer. You can also look it up online at Kelley’s Blue Book, website www.kbb.com.
- Avoid Larger Vehicles
If you don’t have a good reason avoid buying large vehicles. Having a big SUV may look cool, but a large SUV could drive up the cost of your liability premium — the premium that covers damage to other vehicles involved in accident. While providing you better protection it has more potential to inflict greater damages on other cars. Consider a hybrid or an alternative fuel vehicle.
Some insurers will offer a discount if you buy a hybrid or an alternative fuel vehicle. Farmers, for example, offers a 5% discount. In addition to the saving, you will protect the environment and save money on insurance at the same time. Find out the exact rates to insure the different vehicles you’re considering before making a purchase.
Some insurance companies offer discounts to motorists who install anti-theft devices on their vehicle. GEICO, for example, offers a “potential savings” of 25% to drivers who have an anti-theft system in their car. Call the insurance companies that quote you and ask if they offer the program. In case the insurer does, the agent should be able to tell you specifically which devices, when installed, can lower premiums. Car alarms and LoJacks are two types of devices you might want to inquire about.
“The savings for a passive alarm will range between 15 percent and 20 percent with most insurance companies. Active alarm discounts might only be between 5 percent and 10 percent. If you have a LoJack system, you could combine a 25 percent discount with your other anti–theft discount and save even more.”
- Review Your Insurance Policy Annually
It is very important to review and compare your insurance policy annually. It helps you to be sure you save enough on your policy by requesting and comparing new quotes. This will also help you to be certain you have enough coverage in case accidents occur. A lot can happen in a year; you might lose count of these events and be out of coverage.
Following these detailed tips will help you get the best insurance quotes and choose the policy that works best for you. If you know other techniques to save on insurance, kindly comment below.