In recent months, some policyholders have experienced a rise in their insurance premiums from their current provider. If you’ve been affected by rising premiums, don’t worry—there are strategies, other than cancelling your coverage that you can employ to potentially lower your costs. In this comprehensive guide, we’ll explore ten strategies you can use to address increased insurance premiums.
Understanding the Rise in Premiums
Before discussing strategies, it’s essential to understand why premiums are rising with some providers. According to the Insurance Information Institute, homeowners’ insurance premiums have increased by an average of 3-5% annually. Factors like more frequent natural disasters and increasing construction costs have contributed significantly to this trend.
Strategy 1: Let Us Reshop your Insurance for Better Rates
One of the most effective ways to combat increased premiums is to call us to reshop your rates. Many people stick with their current provider out of convenience, but potential savings can be found with another provider. We represent over 40 different insurance companies and one of them may be a better fit than your current provider especially if you’ve had any recent life changes.
Practical Tip:
- Contact us first: Most often, speaking directly with your agent can yield better offers and save you the time of shopping your own rates.
Strategy 2: Bundle Your Policies
Bundling policies can lead to substantial discounts. Many insurance companies offer lower rates when you combine policies like home and auto insurance.
Practical Tip:
- Evaluate your current policies: If you’re not already bundling, let us help you determine if your policies can be bundled. Many of our carriers, including Progressive, just to name one, offer potential discounts for doing so.
Strategy 3: Increase Your Deductibles
Increasing your deductible can lower your premium. However, ensure you have enough savings to cover the higher deductible in case of a claim.
Practical Tip:
- Assess your financial situation: Determine your risk for things like where your home is located and even how much you drive. Make sure you can afford a higher deductible if necessary and then consult your agent for professional advice on how much to increase your deductible.
Strategy 4: Support Independent Agencies Like Ours
Supporting local small businesses can indirectly impact your insurance premiums, as these agencies, like ours, offer personalized services and competitive rates because they represent a carefully selected group of reputable insurance companies which translates into being able to offer you the best coverage at the most competitive price by shopping rates for you.
Practical Tip:
- Engage with your agent: Building a relationship with your local agent can lead to a more tailored and affordable insurance solution. Your agent can build a personalized insurance plan that most often will help reduce your overall costs.
Strategy 5: Improve Home Security
Enhancing your home security can lead to lower insurance premiums as it reduces risk.
Practical Tips:
- Install a security system: Modern systems can be monitored via smartphone apps, providing peace of mind and potential discounts.
- Upgrade locks and windows: Simple upgrades can make your home more secure and less risky to insure.
- Explore savings programs: Many carriers offer programs like Smart Home that can help you save on premium costs.
Strategy 6: Maintain a Good Credit Score
Many insurers consider your credit score when determining your premium. A better credit score can lead to lower rates.
Practical Tips:
- Regularly check your credit report: Use free services like AnnualCreditReport.com to ensure accuracy.
- Pay bills on time: Consistent, timely payments positively impact your credit score.
Strategy 7: Review Your Coverage Annually
Conducting an annual review of your policy can help identify unnecessary coverage or potential savings.
Practical Tips:
- Schedule a yearly review: Set a reminder to evaluate your insurance needs each year.
- Consult with your agent: Discuss any changes in your circumstances that might affect your coverage.
Strategy 8: Take Advantage of Discounts
Different insurance companies offer a variety of discounts that policyholders may not be aware of.
Practical Tips:
- Ask about available discounts: Make sure you are currently taking advantage of any potential discounts your carrier offers by calling your agent.
- Look for group discounts: Membership in certain organizations may qualify you for additional savings.
Strategy 9: Reduce Risk Factors
Reducing risk factors can make you a more attractive candidate for insurance companies, leading to lower premiums.
Practical Tips:
- Maintain a clean driving record: Safe driving habits can lead to lower auto insurance rates.
- Make home improvements: Fixing older roofs or replacing outdated electrical systems can lower risks. If you’ve recently replaced a roof, call your agent, it may help reduce your premium cost.
Strategy 10: Consider a Usage-Based Policy
For some types of insurance, particularly auto, usage-based policies can offer savings by charging based on actual usage rather than estimates.
Practical Tips:
- Research telematics programs: These programs track driving habits and can offer personalized rates. Call your agent to see what carriers offer these programs.
- Assess your driving habits: Ensure that a usage-based policy is a good fit for your lifestyle.
- Assess your vehicle’s age: If you have an older vehicle, you may choose to look at opting out of things like comprehensive coverage, collision coverage, roadside assistance or rental reimbursement.
- Change your driving status: If you’re no longer commuting to work, you might consider changing your status from commuter to pleasure driving. This adjustment can lead to reduced annual mileage, which will ultimately lower your premiums.
Conclusion
Facing increased insurance premiums can be daunting, but with these strategies, you can potentially lower your costs without changing agencies. By exploring options, speaking with your agent, staying informed, and making intentional choices, you can manage your insurance premiums effectively.
As you consider these strategies, ask yourself: How can I continue to support local businesses more in my insurance decisions? Remember, every little step counts towards not only saving money but also fostering a thriving local community.
