7 Ways to Lower Your Insurance Rates

Even if you're content with your current insurance rates, there's always room for improvement. Unwittingly, most policyholders are overpaying for their policies because they are not aware of the cost-cutting strategies we'll describe in this post. Read on to learn how to quickly and simply lower your home, life, auto, and health insurance rates.

• Up those deductibles. Insurance premiums are a guaranteed expense, but deductibles are not. Moreover, the higher your deductibles are, the lower your insurance rates will be. Talk to your agent about increasing the deductibles on your health, auto, or homeowners policies. Raising your deductible by even $500 can make a considerable difference.
• Don't file claims. Obviously, not filing a claim when it's justified defeats the purpose of having insurance, but you should still be judicious about the events over which you file claims. Once you have a claim on your history, your insurance rates will go up and remain elevated for years to come. If the damages involved are small enough to where you can pay out of pocket, you'll save more in the long run by not filing a claim.
• Bundle up your policies. With today's massive insurance carriers, it's usually possible to have the same company underwrite your health, homeowners, life, and auto insurance policies. Aside from streamlining your life, you'll also capitalize on valuable multiple-policy discounts by bundling your coverage together. Multiple-policy discounts average about 20 percent with many insurer.
• Be loyal. It may be tempting to shop around for a new insurance policy every year or so, but the benefits of loyalty may outweigh the small premium decrease you'd enjoy by switching companies. Most insurers reward customers who remain with them by decreasing their insurance rates every so often. For example, you might get a 10 percent discount on your home or auto insurance policy after you've been with your carrier for five years.
• Stop smoking. This may seem arbitrary, but tobacco use can increase your insurance rates on all four major types of coverage: home, auto, health, and life. Smokers are more likely to experience house fires and car accidents, and they are far more likely to experience health problems and premature death. If you'd like to lower your insurance rates in one fell swoop, get and stay quit.
• Use employer-sponsored coverage whenever possible. Employer-subsidized life and health insurance is almost always cheaper than individual coverage. Whenever you have the option, use the policies offered to you by your employer. Some companies may even offer discounts on auto insurance policies.
• Watch your credit score. Your credit rating will affect your home and auto insurance rates. If you can find a way to increase your credit score, you may be able to lower your insurance rates on several policies. Avoid late payments and keep your debt in check, and your premiums will reflect your responsibility.