Save More than $100 on Insurance Premiums with These Pro Tips

When was the last time you did a market survey prior to renewing your personal insurance policy? When was the last time you called different companies for quotes? Or double checked your premiums to make sure you’re getting the best rates? We know it’s a hassle, but in all honestly, you could be saving anywhere from dozens to hundreds of dollars each month. That’s right, each month. So, how do you save all this money?

We asked top personal finance bloggers from around the web for tips on how you can save money on your personal insurance. The next time you renew, you can take the time to follow their advice, and save on your monthly bill. Here’s what top personal finance bloggers had to say:

Shop Around for More Savings

If you’re going with the same provider every year out of habit, then chances are, you’re losing money according to our finance bloggers. Laurie from the Frugal Farmer suggests always shopping around first, and that’s great advice. While some of us stay with the same insurer every year out of habit, or renew automatically for convenience, finance experts suggest that’s a bad idea if you’re trying to save.
Grayson Bell – Debt Roundup: “Call to compare prices on your insurance plans. For both home and auto, you can continue to save by making the providers compete with each other“.

William – DR of Credit: “Be sure to get multiple quotes from different sources, don’t rely on websites that earn commissions from insurance companies to operate“.

Laurie – The Frugal Farmer: “Always shop around. Don’t just stay with your carrier because it’s “what you’ve always done“.

Gary – Gajizmo.com:“Shop around and negotiate. The insurance industry is very competitive, so don’t be afraid to compare quotes. Car, health, and life insurance policies are long-term commitments, so do your research and make the right purchase.”

Car, health, and life insurance policies are long-term commitments, so do your research and make the right purchase.

Hidden Discounts Can Save You Money

Not every insurance company offers discounts, but checking could mean savings. Grayso Bell of the Debt Roundup told us that most people could be qualifying for savings they aren’t even aware of, and that’s hard to ignore, even if you don’t think you qualify for anything.
Grayson Bell – Debt Roundup: “Before each renewal, make sure to call your insurance agent and see if you’re getting all the discounts you’re eligible for. Each company has a large list of discounts that most people are unaware of”.

Lance – Money Manifesto: “Always ask for discounts on your insurance. See if you have any professional organizations that have discounts with your insurers”.

Don’t Rely on Old Premiums – Check for New Ones

You probably already know that your premiums can cost or save you a lot of money, but do you know how to save on them? Our bloggers talked to us about a variety of ways to get discounts on yearly premiums, even without discounts and specialty savings.

William – DR of Credit: “Always recheck your policy yearly to ensure the premiums haven’t increased compared to the market”.

Lance – Money Manifesto: “Make sure to get new car insurance questions every renewal period. Car insurers often change their formulas to calculate premiums and that can result in savings to you if you switch”.
Laurie – The Frugal Farmer: “When buying a vehicle or a home, always remember that the more expensive the vehicle or home is, the more costly your insurance will be”.

Pay Upfront and Save

Getting a great deal on your monthly premiums might seem like it saves you money, but some bloggers, like Melanie of Dear Debt, suggests monthly isn’t the way to go.

Melanie – Dear Debt: “Buy a year’s worth of renter’s insurance instead of paying monthly. You usually get a discount for paying upfront”.
Paying upfront isn’t always an option, but if you have the spare cash, consider taking Melanie’s advice to pay a year in advance. You’ll usually receive a discount, and you’ll avoid any changes to your premiums later in the year. Some insurance companies charge an extra fee for month to month premiums, which can actually range as high as $10 per month. If a year isn’t in the books, most insurance companies accept 3 and 6 month pre-payments as well.

Plan Your Deductibles

Most of us know that deductibles are one of the most important parts of an insurance plan, but few of us know how to choose the right option. Depending on your budget, how accident prone you are, and your lifestyle, our finance bloggers tell us you could be saving money by making a switch.

Lance – Money Manifesto: “If you can afford it, consider increasing your deductibles. Base your decision based on how much money you’ll save in premiums versus the increased cost in deductible. If you make a car insurance claim once a year and raising the deductible from $500 to $1000 would only save you $100 in premiums, it wouldn’t make sense to raise your deductible. However, if the same was true and you only make a claim every 10 years, you’d save $500!”
Brian – DebtDiscpline: “Carrying a higher deductible can lower overall premiums”.
Liquid, Liquid Independence: “Maximize your deductible. Get the highest you can afford”.
Andrew Schrage, Money Crashers: “Raise your deductible on your auto insurance to lower your monthly payment. Just make sure you have this amount set aside somewhere so you can pay your new deductible without going into debt in the event of an accident”.

Improve Your Credit Score

Everyone knows a credit score is important for loans and credit cards, but according to Andrew Schrage of Money Crashers, it also affects your insurance.
Andrew Schrage – Money Crashers: “Improve your credit score and you’ll pay less for things like auto and homeowners insurance. Pay your bills on time and work on reducing your balances, as two brief examples for how to do it”.

Watch Your Loans!

Loans can greatly affect your insurance premiums because most mortgage and car loan providers require you to carry full coverage insurance. This can add a great deal to your monthly premiums, no matter what discounts you get.
Gretchen – Retire by 40: “Shy away from car loans. Cars that are paid for are not required to carry full coverage insurance and this can save bundle!”

Bundle Policies for Extra Savings

Need more than one insurance policy? You do if you have both a house and a car! Andrew Schrage of Money Crashers had a unique tip for saving money by bundling your insurance policies.
Andrew Schrage – Money Crashers: “Get more than one policy through the same company and you’ll usually get a bundling discount.”

How Much Money Can You Save Each Month?

Saving on personal insurance isn’t always a matter of “You can save this much”, but you can usually save a lot, especially if you don’t typically put a lot of time into your renewal. Spending the time to ask for quotes, compare prices, ask about deductibles and discounts, and making sure that you’re in the best position to qualify for good rates can save you a lot. Our personal bloggers had a lot to say on how much you can save.

Grayson Bell – Debt Roundup: $10 – $60 a month

William – DR of Credit: $20

Laurie – The Frugal Farmer: $30-$80

Liquid: $250

Melanie – Dear Debt: $150

Gretchen – Retire by 40: $100

Lance – Money Manifesto: Depends on insurance company and the tip.

Brian – DebtDiscpline: Savings will vary and depend on your personal situation.

 

Saving money on your insurance premiums might not always be as easy as it sounds, but with the right planning and dedication – you’ll be able to cut an average of $102.5 from your monthly personal insurance bill.

Good luck! If you have more tips of your own or you want to share your experience with the experts, write us at: laura@montanacapital.com