Are you wondering how to reduce insurance premiums? It seems like around every corner are rising costs. Here are a few tips to help save you money.
Use an insurance broker
Without a doubt, shopping around to get different quotes is one of the best ways to find lower rates. But most people don’t have the time necessary to devote to finding lower insurance premiums. Smart consumers know that a qualified insurance broker, like Bozzuto & Co. Insurance Services, will do the shopping for you. A good insurance broker should have agreements with several top insurance companies. In addition to being able to get multiple quotes, they often are able to get reduced prices and can make sure you are taking advantage of all the different discounts available.
Increase your deductible
If you always have at least $1,000 in savings, you should have a deductible of $1,000. Increasing your deductible to $1,000 instead of $500 could decrease your premiums by 25%. In addition, you should avoid making claims for under $1,000, especially for homeowner’s insurance policies. Any claim will increase your premiums.
Bundle your policies
Most companies will give discounts if you purchase multiple policies. By getting two or more policies from the same company, you cut down on processing fees and paperwork and companies are willing to pass on the savings. Usually, the more policies you buy from the same company the better rate you’ll get. So its not unusual to see significant savings if you buy auto, homeowner’s, life and umbrella policies all from the same company. Your independent insurance agent should be able to shop around for these multi-line policies for you.
Make improvements for safety and security
If you make your home or auto safer or more resistant for disasters, you should be able to save on your premiums. Common examples of improvements that reduce premiums are alarm systems, GPS tracking, reinforcing your roof, getting your home retrofitted to withstand earthquakes, or updating your heating and electrical systems to reduce the risk of fire. Your insurance agent should be able to tell you what improvements will help to lower your insurance premiums.
Make sure you are not overinsured
You should be doing an annual review of your insurance portfolio to make sure that you have adequate coverage as well as make sure you’re not paying for coverage that you don’t need. If you took out additional coverage for your new computer system 5 years ago, chances are it doesn’t cost nearly as much money to replace today as it did then. Also make sure that you aren’t paying too much for rebuilding costs. Often when consumers buy a new house they get coverage for the amount that they paid for the house. Usually this is more than is needed. 10-15% of the purchase cost is for the land and chances are if you are having to rebuild, the land is fine. Your insurance agent should be able to provide a calculator for you to figure out how much coverage you actually need so you don’t pay higher premiums than necessary.
If you live in Sacramento or throughout California and are looking to reduce your insurance premiums, give us a call or contact us and we’ll get you the best deal.
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