Shopping around can help you save money. Take some time each year to get quotes from several insurers and make sure you’re not overpaying for your homeowners and auto insurance coverage.
Companies Change Their Rates
Insurers frequently change the way they calculate premiums. Even if you compared rates last year and got the best deal that was available to you at the time, another company might offer you the same coverage with lower premiums this year. You won’t know unless you request quotes from different insurers and compare them side by side.
Changes to Your Home Can Affect Your Insurance Rates
You might have made home improvements that can save you money. For instance, new deadbolt locks or a security system can make you eligible for lower homeowners insurance premiums.
Other additions might make you riskier to insure. Pools and trampolines are frequent sources of expensive insurance claims, but insurance companies weigh those risks differently when setting premiums. One insurer might charge significantly more to insure a house with a pool or a trampoline than another company would.
Changes in Your Personal Circumstances Can Influence Your Premiums
Some things that might seem unimportant can have a significant impact on the amount you pay for insurance. For example, insurers generally consider married couples less risky than single people. If you recently got married, you might be eligible for lower insurance premiums.
In some states, insurers use credit-based insurance scores to assess risk. People with lower credit scores are more likely to file claims and are considered riskier than people with better credit.
If your credit score went up or down in the past year, insurers might consider you more or less risky than they did a year ago. Since each company has its own way of evaluating risk, it pays to get quotes from several insurers and see if you qualify for more affordable premiums.
Homeowners insurance companies often charge more to cover customers with dogs. If you got a dog in the past year, it will most likely affect your homeowners insurance rates, but the amount of the impact will depend on the company. One insurer might charge you a lot more to cover your pet, while another might offer you the same coverage with lower premiums.
You Might Be Eligible for Discounts
Insurance companies offer customers numerous discounts that can reduce their premiums. Bundling policies is one of the most common ways to save money. If you purchase your homeowners and auto insurance through the same company, you can pay less than you would if you bought policies from different insurers. You’ll have to compare quotes to see which insurer offers the best rates.
Insurance companies also offer discounts to people who work for certain companies and who are affiliated with certain organizations. Those discounts differ by insurer. You’ll have to check with individual companies to find out if you qualify.
