Everyone needs insurance, and none of us want to pay more than we need to. So, of course, we will make special efforts to get the best deal available. Here are a few simple ways to save money on your insurance.
Find the company with the best rate for you.
Different companies have preferences and differing rates according to a whole variety of factors, including household size, driving history, etc. Dave Ramsey recommends getting insurance through an independent agent or agency because they have a number of companies to work with. He also gives some explanation on what increases auto insurance rates in this blog:
https://www.ramseysolutions.com/insurance/why-is-my-car-insurance-high?
Pay in full or set up automatic payments.
Paying in full eliminates installment fees added onto monthly payments. Setting up automatic payments ensures the company that payments will be scheduled on time and prevents cancellation because of a busy week and forgotten payment.
Limit Risk
Auto
Reducing the number of vehicles to insure and the distance traveled are not always realistic options. However, practicing safe driving is something we all fit into our daily lives and commute to reduce insurance premiums and accidents. You can apply your safe driving to your insurance by signing up with the driving tracking program with your insurance company.
Sometimes we want all the coverage available; other times, the coverage isn’t worth the premium. While the state requires liability insurance, physical damage coverages are required by lienholders. But with old vehicles, the value of the vehicle may not be enough to make it worth having full coverage on the vehicle. You may want to save some money on your monthly payments and deal with the minor dents in the old beat-up truck after you back into a pole.
Home
Be aware of the risks around your home. Swimming pools, trampolines, wood stoves are all risks that may add a surcharge to your policy. While these don’t make your home ineligible, you will want to keep these areas supervised or clear of clutter as needed.
When moving and selecting a home, keep in mind that mortgages require flood insurance for a home in a flood zone. Flood insurance, as well as earthquake insurance, tend to be relatively expensive.
Commercial
Commercial insurance will not cover personal or private claims or vice versa. Keep your commercial and residential risks separate as best as you can and obtain insurance for both. Don’t allow friends and family in work areas.
Specify the projects you work on and stay within those specifications to avoid uncovered claims. A handyman insurance policy will not cover a smashed car when the handyman cuts down a tree.
Take Responsibility
Auto
Keep your policy active and paid on time; late payments and lapses in coverage do cause higher rates. Be a responsible driver; driving violations greatly impacts your rates. Especially for teenagers! Teach your teenagers to obey traffic laws and encourage them to keep their grades up in school, as that will allow for a good student discount on your insurance.
Home
Maintain your home and yard, keeping them in good condition. Don’t allow debris to gather around the yard; keep growth trimmed. Keep trees trimmed and off the home and outbuildings. Replace the roof when it is old, maintain appliances to prevent leaks and damage.
Look here for checklists on seasonal home maintenance tasks: https://riskman1.com/why-home-maintenance-is-important/.
Commercial
Your business is only covered to the degree of accuracy you have given. Keep your insurance agent updated on the types of projects you start, the employees, sales, and drivers. Be sure to collect certificates of insurance on any subcontractors hired. Complete all audits accurately and in a timely manner. Be sure to speak with your agent if you are unsure how to handle a situation.
Saving Money with Insurance
Insurance can be expensive, and it is important to be aware of what you are purchasing and to select coverages that you need. But insurance is important; it allows you to rebuild your home when a disaster occurs or to repair the damage you might have caused in an accident. The purpose of insurance is to protect you when something happens.
