How to Save Money on Insurance: Tips and Tricks From the Experts

How to Save Money on Insurance Tips and Tricks From the Experts
How to Save Money on Insurance Tips and Tricks From the Experts

Car insurance rates are rising, but that doesn’t mean your premium has to break the bank. It’s pretty simple to save money on auto insurance if you know the right tricks. For example, you could switch to a pay-per-mile program for low-mileage drivers. Similarly, you can get a discount by bundling your policies with one insurer.

Review Your Policy

Whether you’re already insured or considering a new provider. You can make a big difference in your premium costs by reviewing your policy. A thorough review of your coverage limits, deductibles, and other terms can help protect your family, home, and possessions while avoiding unnecessary payments.

A review is critical after significant life events like getting married, purchasing a new car, or sending a child to college. But even a simple change in your household, such as adding a child to your car insurance policy or removing one who’s moved out, could save you money by reducing redundant coverage. It’s also essential to evaluate your discounts to ensure you are getting all the savings.

Consider Usage-Based Policies

Usage-based insurance (UBI) allows insurers to track driving habits using a device or mobile app and may help break away from traditional factors that influence your premium. Examples of UBI programs include Progressive Snapshot, State Farm Drive Safe and Save, and Travelers IntelliDrive.

The good news is that the data collected by these programs can help you save money. By encouraging safer driving behaviors, these programs are helping drivers earn up to a five percent discount for enrolling and additional savings at renewal.

Bundle Policies

Many insurance providers, like Mountain Insurance, offer discounts for those who purchase multiple policies. This is often referred to as “bundling.” Shopping around for the best insurance coverage that meets your specific needs is essential, as not all insurance companies are equal.

Depending on your insurance carrier, saving between 10% and 25% may be possible by bundling your home and auto policies together. Additionally, many companies allow you to bundle other policies such as life insurance, renters insurance, and more. This can help simplify your bill paying and reduce your paperwork. It also can help you save time when submitting a claim.

Take Advantage of Discounts

Using an app or telematics device to track how many miles you drive per year. This helps you save money with some insurance companies that offer usage-based auto policies. You may be eligible for discounts on your insurance premium based on factors such as lower annual mileage. Using public transportation, or being a member of specific organizations. 

Other saving ways include taking a driver safety course or installing an anti-theft device. You can also boost your deductible to reduce your premiums. This could increase the amount you would have to pay out of pocket in the event of an accident. Lastly, paying your six-month or annual policy upfront can earn you a discount, depending on the carrier, from 5% to 10%.

Review Your Credit

Your credit report is your grown-up report card, and lenders, potential landlords, employers, and even insurance companies pay attention to it. It’s essential to regularly review your credit report to ensure its accuracy. As errors can affect your ability to borrow money, get hired, or rent an apartment.

Checking your credit report can help you find errors and work to improve your score, which may save money on your insurance rates over time. This is especially true if you ensure the information about your debt is correct, such as revolving accounts like credit cards and loan balances. It’s also a good idea to keep tabs on your inquiry history. As spikes can indicate you’re seeking new credit too often.

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