10 Easy Ways to Lower Your Insurance Payments
Insurance is essential, but overpaying isn’t! Here are simple, actionable strategies to reduce your premiums without sacrificing coverage.
Car Insurance Savings
1. Increase Your Deductible
Raising your deductible (e.g., from
500
→
500→1,000) can cut premiums by 15-30%.
Best for: Safe drivers who rarely file claims.
2. Ask About Discounts
Safe Driver – No accidents/tickets? You qualify.
Multi-Policy (Bundling) – Combine home + auto for up to 25% off.
Pay-in-Full – Avoid monthly fees by paying annually.
Low Mileage – Drive less? Usage-based plans (e.g., Progressive Snapshot) can help.
3. Drop Unnecessary Coverage
Older car? Consider removing collision/comprehensive if the car’s value is low.
Rule of thumb: If annual premiums exceed 10% of your car’s value, rethink coverage.
Homeowners/Renters Insurance Savings
4. Improve Home Security
Install burglar alarms, smoke detectors, or deadbolts for 5-20% off.
Some insurers discount for smart home devices (leak sensors, cameras).
5. Maintain a Good Credit Score
In most states, a higher credit score = lower premiums (except CA, HI, MA).
6. Avoid Small Claims
Frequent claims can raise rates. Pay minor repairs out-of-pocket if possible.
Universal Money-Saving Tips
7. Shop Around Annually
Compare quotes from at least 3 insurers—rates vary wildly.
Best time to shop: Before renewal dates.
8. Adjust Coverage Limits
Don’t over-insure! Re-evaluate:
Life insurance – Do you still need the same payout?
Home insurance – Is your rebuild cost estimate accurate?
9. Take Advantage of Group Plans
Check employer, alumni, or union discounts (e.g., GEICO’s partner programs).
10. Ask for a Loyalty Discount
Been with the same insurer for years? Call and negotiate a better rate.
What NOT to Do
Don’t skimp on liability coverage – A major lawsuit could ruin you.
Don’t let policies lapse – Gaps in coverage = higher future costs.