Bundle insurance. If you roll your homeowners, automobile and other types of coverage into a package with the same company, you may receive a significant discount. On the other hand, companies that sell only one type of coverage, such as auto insurance, may offer less-expensive rates than companies that offer many types. Add everything up to determine whether or not a bundle will work for you.
Consider dropping collision and comprehensive auto coverage if you have an older car and a way to replace it without the help of insurance. A good rule of thumb is that if the cost of your annual collision and comprehensive coverage equals 10 percent or more of the value of your car, drop the coverage. You could then use the savings to go toward the purchase of your next vehicle.
If you carpool or commute by rail and you park your car at a station, low mileage discounts may be available from your auto insurance company. Teenage drivers who get good grades may also be eligible for discounts.
Consider ditching a second or third car — along with a hefty portion of your premium.
A safe-driving course may get you auto insurance discounts of up to 10 percent. Washington, D.C., and 34 states mandate discounts for people who take a course, which usually costs between $15 and $40. Ask your agent — restrictions may apply. Look for payment deals. If you pay premiums annually, semiannually or even quarterly, you could save by avoiding monthly installment fees. Or find a company that doesn’t charge installment fees. Some offer discounts if you sign up for automatic or online electronic payments.
A homeowners insurance premium reduction is often available for retirees and seniors because they may spend more time at home and can better monitor and maintain their property. Also think about raising your deductible.
Inventory your possessions annually and adjust your coverage. If you gave away expensive jewelry, remove that rider, which can decrease your home insurance premium anywhere from 1 to 20 percent.
Security improvements such as burglar alarms, dead-bolt locks, smoke detectors or even home sensors that can detect water or natural gas leaks may cut your homeowner insurance cost.
Long-time policyholders may earn a cut in premiums of as much as 10 percent. But that discount may come after years of increases, so check to see if you might do better elsewhere.
Nonsmokers, exercisers and people who maintain a healthy weight can enjoy big savings on life insurance.
Rate discounts on insurance levels often save money. For example, a $250,000 life insurance policy may have a lower premium than a $200,000 policy simply because the company offers a discount at $250,000.
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