The year 2016 is upon us and so it’s time to bring on a fresh round of New Year’s resolutions. Is saving money on insurance one of them?
Cutting out sugars and reading more books is great, but nothing makes for a rewarding resolution like putting more money back into your bank account.
If you’re not sure where to start, no worries, we have a few great tips for you.
Here are 5 Easy Ways to Save Money on Insurance in 2016.
1. Shop Around
Did you know that 78% of people have not shopped around for new insurance in the last three years? That’s a long time with same policy!
Chances are that things have changed with your personal assets and in the insurance industry, and so shopping around is the very first step in saving money.
Get at least three quotes from different “direct” companies like State Farm, Farmers, or Geico for their best rates. Also, give your local insurance agency a call. Your local agency will be able to provide quotes from up to six high-quality insurance companies with one call.
2. Buy Your Homeowners/Renters and Auto Insurance from the Same Company
This may seem like a no-brainer for most, but combining your Home/Renters and Auto Insurance with the same company can save you up to 20% on the total yearly cost.
Many companies also offer other discounts for customers that have motorhomes, boats, or more than one vehicle in the household. Some insurance companies even reduce the rates for long-time customers.
Plus, combining your insurance together makes it much easier to make changes to your policies or talk to a customer service representative if something were to happen that involves multiple pieces of property.
3. Take Advantage of Low Mileage Discounts
Today, many companies offer significant discounts based on your yearly auto mileage. Check with your current insurance company to find out how many miles per year they are basing your rate on.
If they are estimating that you drive 15,000 miles per year, but it is really only 8,000 per year, you can have that corrected and immediately save money on your policy.
When shopping around, be sure to provide the insurance company that is providing a quote an accurate estimate of how many miles per year you driving. You don’t want to be hit with rate increases in the future based on inaccurate information.
4. Ask About Individual Insurance Company Discounts
Not all insurance companies are the same and so not all discounts that they offer are the same. Some companies provide discounts based on the type of education you’ve received, while some provide discounts if you are a AAA or other group member.
Here are a few of the most common discounts to look for:
– Antitheft Devices
– Auto and Homeowners Coverage with the Same Company
– College Students away from Home
– Defensive Driving Courses
– Drivers Ed Courses
– Good Credit Record
– Higher deductibles
– Low Annual Mileage
– Long-Time Customer
– More than 1 Car
– No Accidents in 3 Years
– No Moving Violations in 3 Years
– Student Drivers with Good Grades
The key to savings is not the discounts, but the final price. A company that offers few discounts may still have a lower overall price, so keep that in mind when shopping.
5. Before You Buy, Compare Costs
This tip is more aimed at how you can save money in the future on your insurance.
Before you purchase a new car, a new home, or something for your home, be sure to ask your insurance agent how it will impact your insurance costs.
Things that may affect auto insurance pricing include: safety features, horsepower, number of doors, drivetrain, overall vehicle cost, deductibles, etc.
Things that may affect homeowners/renters rates include: type of roof, year house was built, security system, type of heating system, jewelry items, art items, etc.
And while it may not stop you from purchasing the item completely, at least you will have an accurate idea of what it will cost to insure.
One Important Thing We Recommend at Vital Life Insurance
Never sacrifice coverages for costs. Always purchase the maximum amount of auto insurance, property insurance, and liability insurance that you can afford because it will be a big difference maker should anything ever come up.