Are you looking for ways to reduce what you pay for insurance coverage? Experts offer five helpful tips that can reduce the cost of insurance:
- Buy policies from the same insurer - Many insurers will give you a discount if you purchase two or more types of coverage, such as homeowners, auto and umbrella.
- Raise your deductibles - You can significantly reduce premiums for auto and homeowners insurance by carrying a higher deductible. Increasing the deductible on your homeowners policy to $1,000 from $500 could lower your premiums by up to 25%. Before you raise your deductible, make sure you have enough in savings to cover the higher deductible.
- Check rates before you buy - Insurance rates vary significantly depending on the type of car you own. Typically minivans and small and midsize sport-utility vehicles have the lowest insurance rates, while sports cars and convertibles cost the most to insure. Since insurance can add significantly to the cost of owning a vehicle, check with your insurer before you purchase a new vehicle.
- Look for discounts - Discounts exist for things such as having a safe driving record, having safety features like an alarm on your car, or better rates for a teenage driver who gets good grades. Check with your insurer to see what discounts might be available to you.
- Maintain good credit - Did you know that drivers and homeowners with low credit scores often pay higher premiums than those with pristine credit? Avoid higher rates by paying your bills on time and making sure you don't carry a large credit card balance. It's also important to monitor your credit report regularly to make sure it doesn't contain errors that could hurt your credit score.
Contact 1st Source Insurance for information about insurance coverage and rates.