Insurance World

Automobile insurance is one of those things in the budget that is always going to be there. There are very few places in America that permit you to drive vehicles without insurance and so it behooves each and every one of us to get a better handle on our own auto insurance coverage. The industry is changing a bit because the competition is strong. There are new and creative auto policies on the market today. The trend that has gained the most momentum is the self-insuring concept. Higher deductibles is the weapon that the customer can use to lower rates significantly. Higher deductibles means that the policyholder has decided to take on more of the risk for the automobiles insured. The day of low collision deductibles is all but gone. Lower deductibles no longer warrant the high premiums. There is too much money to be saved with higher deductibles.

Lowering the Rates for Young Drivers

Young drivers on newer vehicles that have a lien holder’s interest will raise the auto rate significantly. The collision and comprehensive rates for drivers under 21 years of age are very high. A young driver on an older vehicle without the collision and comprehensive coverage will lower the rate significantly. There are discounts for young drivers who have completed a qualified drivers training course. Some companies have good student discounts on students with a grade point average of 3.0 or better. When the young driver reaches 21 the rates begin to drop for most companies.

Senior Citizen Discounts – Most companies have discounts for people age 55 and older who are retired or work less than 20 hours a week. There are mature driving courses that can also give the senior citizen a discount.

Multi-Policy Discount – This discount is available when you insure both your auto and home with the same insurance company.

Tort Options – Some companies offer discounts for a limited tort option. Tort is your ability to sue for pain and suffering. Limited tort rates in some states reduce the overall premium of the policy up to 30%. Ask your insurance company about the tort options in your state.

Homeowners insurance is one of those things we’re glad we have when there’s an emergency, but the rest of the time we kind of resent paying. That makes sense, because we already have enough bills stuffing the mailbox every month, thank you very much. Now, there’s no way to get coverage for free, but there are some ways you can lower the amount you pay every month for your homeowners insurance. Let’s take a look at five ways you can lower your premium:

1. Shop around and compare

Just because you’ve been with the same insurance company for a while, that doesn’t mean you have to stay with them. In this day and age, it’s easy to use the Internet to compare rates and coverage between different companies. Call insurers or browse their web sites to see what they are offering for homeowners in your area. You can also contact your state insurance department, which may list the prices of the major insurers in your state.

2. Ask about discounts based on loyalty.

If you never ask your insurance company for a discount, you’ll never get one. But if you’ve been a customer for more than three years, you might be able to negotiate a 5% discount on your premium. Some insurers will give you a 10% discount if you’ve been with them more than six years. Don’t be afraid to let them know you’re shopping around and comparing them with other insurers. It’s very likely they’ll be willing to lower their rates a bit to keep you on board.

In addition, some insurance companies will cut your rates if you’re over 55, so make sure and contact them if you’ve had a birthday and reached this magic number. You could get a discount of as much as 10-15%.

3. Home security can lead to a discount.

Another way you might qualify for a discount is if you’ve installed a home security system. Insurers know this means you’re less likely to be the victim of a crime, so they’re less likely to have to make a big pay out to you. You don’t necessarily have to install a big alarm system with lots of gizmos and sirens. You may be able to get a discount simply by letting the insurance company know you’ve added smoke detectors, dead-bolt locks, locks for your windows, timers for your lights, and motion-sensing outdoor lights.

4. Raise your deductible for a smaller monthly payment.

Homeowners insurance has many of the same rules as car insurance, and one of them is that if you’re willing to pay a higher deductible (this means the amount you’re willing to pay yourself in the event of a break-in, fire, natural disaster, etc.), they’ll charge you less each month. Simply increasing your deductible from $500 to $1,000 can cut your premium by 25%.

5. Bundle your insurance plans.

Many companies will offer a 5-15% discount if you use them for all your insurance needs (i.e. homeowners insurance and auto insurance). This will likely turn out to be cheaper than having separate policies for everything you want to insure.