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.