Skyrocketing Insurance Costs? Discover How to Slash Your Bills Now

Inflation has caused costs everywhere to go up and insurance is no exception. Millions say they are paying more for coverage.

Over the past two years, auto and homeowners insurance premiums have increased significantly, with automotive increasing 16.5% in just the last year. Now, people are wondering if there’s any way they can save money, especially in an economy where every penny counts.

Experts say there are things you can do to combat these increases.

1. Adjust Your Coverage

One way to lower your premium costs is to adjust your coverage. For automobiles, this might mean opting for collision instead of comprehensive, but you should only do this if your car is on the older side. If it’s still got value or it’s under a loan, stick with comprehensive.

With homeowners insurance, take a look at what coverages you might be able to lower or do away with altogether.

2. Seek Out Discounts

Insurance companies are good about offering discounts, but sometimes they miss one that could save you money. If you have multiple vehicles on your auto insurance, that typically qualifies for a discount.

If you have your home and vehicle covered by the same company, you could qualify for a multi-line discount. Ask your insurer if there are others available that you could capitalize on and save even more.

3. Increase Your Deductible

This one is a catch-22 of sorts. Increasing your deductible (out-of-pocket expenses) can help lower your premiums, but you’ll pay more if you get into an accident or file a claim.

Speak with your agent and see how adjusting your deductible could affect your premium and do some budgeting to determine if you have the wiggle room to pay more if the worst should happen.

4. Shop for a New Insurer

This may be the last thing you want to do, especially if you are happy with every other aspect of your coverage. However, sometimes, shopping around is what you need to do in order to see what other options are out there.

Some insurance companies may offer a discount to new policyholders, making it an attractive option. But, make sure the coverages are similar and that the insurer has a good reputation for handling claims.

5. Maintain a Clean Driving Record

One of the quickest ways to increase your premium is to have driving infractions on your record. This includes speeding tickets or other moving violations. Accidents may increase your costs more, but driving infractions show you’re a high risk.

Make sure you drive the speed limit and observe all road signs. Frequent violations can also lead to your insurer dropping you because of the higher risk factor.

6. Boost Your Credit Score

As odd as it may seem, your credit score sometimes plays a part in your insurance premiums. The lower your score, the more you’ll likely pay.

Part of the reason for this is research shows people with higher scores are less likely to file claims, making them a lower risk. Another factor is a lower credit score is a higher risk for insurers. Not all states use credit scores, but you can speak with your agent and find out if yours is one of them.

7. Install a Security System

Safeguarding your home is important to keep would-be burglars out, but it can also help lower your premium. This is because the deterrent is often enough to prevent theft and makes your home a lower risk.

Lower risk equals lower premiums. Provide your insurer with proof of the security system to get the discount.

8. Avoid Filing Too Many Claims

If you file too many claims, it could trigger a review of your account, which could lead to increased premiums as well as a possible policy cancellation.

In some cases, it’s cheaper to just fix the damage out of pocket, especially if the costs are lower than your insurance deductible.