You have to pay for insurance, but that doesn’t mean you have to pay exorbitant amounts. Many people pay more for their insurance than they should because they don’t know what the benefits are. Insurance companies offer many perks to attract new customers and retain existing ones, but they don’t always make them clear. Knowing these ways to save money can make a big difference in how much you spend on your home, car, health, or life insurance. You may not be taking advantage of the top five insurance benefits yet, but here’s how to get them.
Bundling Discounts
Bundling multiple policies or buying them from the same company is a popular and practical way to save money on insurance. If you purchase both your auto and homeowners insurance from the same company, you can save a significant amount of money. Occasionally you can get up to 25% off both packages. Insurance companies appreciate customers who stay loyal to their insurance and will pay you if you bring them more customers. You can often get auto insurance, renters insurance, condo insurance, life insurance, and even pet insurance all at the same time. Ask your insurance company what package options they have and how much you can save by combining your packages.
Drive Safely and Save Money
If you haven’t reported any claims, you may be eligible for a discount on your auto insurance. Insurance companies reward drivers who haven’t had an accident or received a speeding ticket because they’re considered a lower risk. Some companies even offer usage-based insurance plans, where mobile apps or devices track your driving behavior. You can save more if you always drive safely, don’t brake suddenly, and don’t speed. If you’re confident in your driving, signing up for one of these plans can lower your premium over time.
Discounts for Good Credit
Your credit history not only affects whether you can get a loan, but also the cost of your insurance. Insurance companies often use your credit score to estimate your risk profile. If you have a better credit history, your premium may be lower because you are seen as more financially responsible and less likely to file a claim. If your insurance company does not automatically take your good or excellent credit history into account, you may be missing out. Ask your insurance company if they use your credit score and if you can get a lower premium because of it.
Home Security Discounts
In most cases, home insurance companies will lower your premium if you improve the condition and security of your home. Your energy rates may be lower if you install smoke detectors, burglar alarms, door locks, or a security system. You may even be able to get a discount from your insurance company if you have a fire extinguisher or live near a fire station. You may also be able to get a lower rate if you update your home’s utilities or building systems. Your insurance company is more likely to work with you if you make these changes because it reduces the chance of damage or claims.
Low Mileage and Usage Discounts
If you don’t drive often, you may be missing out on low-mileage car deals. Insurance companies know that the less you drive, the less likely you are to get into an accident. Some companies also offer pay-per-mile insurance plans. These plans are ideal for people who work from home or don’t drive often. You can also earn rewards for safe driving through usage-based insurance plans that monitor your driving habits. People who drive less often or more cautiously tend to benefit from lower premiums thanks to these technology programs.
Overall
You can save a lot on your insurance premiums if you ask for them, but they’re not always easy to find. There are many ways to save money on your insurance without sacrificing your coverage. Some of these methods include sharing, driving safely, improving your credit history, and securing your home. It’s important to review your policy regularly, ask your insurance company for deals, and make sure you’re saving every penny you can. If you put in a little effort and know what to look for, you can get better service for less money.
