Family Budget: 7 Tips to Save on Auto and Homeowners Insurance

Keeping your insurance coverage current, whether it’s home, auto or health, is critical no matter how much you need to cut from your budget. Allowing coverage to lapse can have serious financial repercussions. A serious illness, major damage to your home, or a car accident could bankrupt you.

With the high cost of insurance these days, it only makes sense to shop around for the best deal on insurance coverage. Insure dot com is a great site that will provide you with quotes from various companies. You may be able to get a better deal on insurance coverage simply by switching companies or increasing your deductibles. Another idea is to opt for basic coverage and get rid of all the bells and whistles you may have with your policies.

Also, make sure you get all the discounts you should get. For example, you could get a discount on your car insurance if you don’t drive to work. Discounts are also available for those who insure their home and car with the same company. Some companies will also lower your auto insurance rate if you take a defensive driving course or a course that refreshes your driving knowledge and skills. You can save a lot of money with most insurance companies on your homeowners insurance if you also install an alarm or other security features.

I’ve put together a list of 7 tips to help you save on both your auto insurance policy and your homeowners policy. These tips have helped me save significant sums over the years and I’m sure they will do the same for you.

homeowners insurance

1. When you provide the value of your home when applying for a homeowners insurance policy, do not include the value of the land your home is on. Secure your home alone.

2. Check with your insurance company to see if you will save money by installing deadbolts, smoke detectors, and Co2 detectors. If you already have these things and your insurance company offers a discount for them, make sure you get that discount.

3. If someone in your family has smoked in the past, but has quit, check with your insurance company to see if you are entitled to a premium discount. Increasingly, those who have smokers in their family are paying a higher premium because cigarettes are one of the leading causes of home fires in the US.

Car insurance

4. If your vehicle is an older model and it’s paid off, consider canceling your collision coverage. This is especially true if you spend more each year on your insurance coverage than the car is worth. Another option in this case would be to increase the deductibles for collision and comprehensive coverage. If you owe money on your car, no matter how old it is, your lender may not allow you to cancel coverage until the loan is paid in full.

5. Make sure you get all the discounts you’re entitled to, including:

• If you have anti-lock brakes, automatic seat belts, and air bags
• If you are in a particular profession. Professions such as teachers and engineers, for example, have fewer accidents, so their rates are lower.
• If you have served or are currently serving in the military, you may be eligible for a discount.

6. If you need to buy a new, but low-key, low-performance car. Don’t buy a super-stylish sports car if you’re planning to save money on your insurance.

7. Find out if you belong to an association that has arranged car insurance discounts. Triple A is one of those associations.