Lower Premium Insurance

How to get lower premium for Insurance?
Insurance protects you against losses you cannot afford. Sine you cannot predict what will happen in the future, it is important to protect yourself and your possessions against damage and harm. 

Insurance can be an expensive proposition but by following some of the steps outlined below, you can buy an insurance that will let you pay lower premiums: 

 

• Shop Around – This is probably the most important step you could take before buying insurance. Ask your friends, check the Internet or contact your state insurance department. Get price quotes from at least three companies and compare before opting for one.

• Raise Your Deductible - Deductibles are the amount of money you pay on a claim before the insurance company reimburses you. The higher your deductible, the more money you can save on your premiums. The typical deductible is at least $500. If you can raise your deductible to $1,000, you could save up to 25%. 

• Buy your policies from the same insurer - Buy your auto and home insurance with the same company as this could yield a discount of up to 30% on the combined premiums. 

• Make your home more disaster resistant - You may be able to save on premiums by adding storm shutters, reinforcing your roof or buying stronger roofing materials to your home. In addition, modernizing your heating, plumbing and electrical systems reducing the risk of fire and water damage can also reduce your premiums.

• Improve security – By installing a sophisticated sprinkler system and a fire and burglar alarm, you can save as much as 15 - 20%. But evaluate the cost of the systems against the amount you will save. Having an alarm system on your car or a vehicle tracking system can save you as much as 45%. 

• Good credit record - Establishing a solid credit history can cut your insurance costs. To establish a good credit record, pay your bills on time, do not obtain more credit than you need, keep your credit balances as low as possible and check your credit record on a regular basis.

• Continuing with the same company: You may receive a special discount for being a long-term policyholder. The savings can range from by 5% - 10%. Compare this price periodically with that of other policies.

• Review your policy: Revisit your policy and review it every year to see if there are any changes that can save you money.

• Buying a Home: When buying a new home, consider the insurance costs. You may pay less for insurance if your home’s electrical, heating and plumbing systems are less than 10 years old. Choosing wisely could cut your premiums by 5 to 15%.

• Restricted Driving – Restrict the driving of your car to two persons – this can save you up to 40%. 

• Low Mileage - Discounts are given for doing 12,000 miles per year or less. The lower the mileage the greater the discount. But if you exceed the agreed limit you will be penalized heavily when making a claim. 

• Car Usage - Excluding all business use for your car usually results in a lower premium. 

• Group Insurance- Being a member of a certain professional groups like a teachers' association could also qualify you for a discount. 

• Slow Down - A clean driving record can qualify you for a discount of 20%.