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By: Aquib Nawab
Finance
Opt for a higher deductible amount, say $1000 instead of the standard $500 deductible. This will lower your premiums significantly. For example, raising deductibles from $500 to $1000 could reduce premiums by 15-30%. Just be prepared to pay more out of pocket for small claims before the insurance kicks in.
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Adding smoke detectors, fire alarm systems, video doorbells etc. can get you a nice discount on premiums. For example, installing a burglar alarm could get you 10% off while a video doorbell could save you 5%. Document the security upgrades and notify your insurer to re-evaluate your premiums.
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Fix loose railings, uneven steps, faulty electrical wiring, missing handrails etc. to minimize risks. Replacing an old electrical panel or renovating an old drafty attic could reduce risks substantially. Inform your insurer about safety improvements to reassess premiums.
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Buy auto, life, health policies from the same insurer. Bundling multiple policies with one insurer makes their business more profitable so they offer discounts. For example, bundling home and auto insurance could get you 20% off the combined premium.
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Insurers check credit scores before issuing policies. Good credit score implies you are financially responsible so you may get a lower risk category. People with credit scores over 700 save significantly on premiums.
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Employers, alumni networks, associations etc. often tie up with insurers for group deals. For instance, a university alumni program with an insurer may offer graduates discounted premiums. Explore these options.
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Get detailed quotes from at least 4-5 insurers before renewal to find the best rate. Online comparison sites make this easier. Switching insurers could potentially save you hundreds of dollars in premium annually.
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Avoid paying for unnecessary add-ons like flood insurance if you don't live in a flood zone. Or lower personal liability limits if you have sufficient umbrella insurance. Removing unnecessary coverage is an easy way to lower premiums.