How Can I Save Money on Home and Auto Insurance?
- 1). Consider combining your homeowners and automobile insurance policies under one umbrella. Many insurance companies provide a significant multipolicy discount, so simply combining coverages could save you 10 to 20 percent.
- 2). Assess the value of your car to determine whether or not it still makes sense to carry full comprehensive and collision coverage on the vehicle. If the value of your car is less than $3000, the additional coverage may not be worth the extra price.
- 3). Ask your agent for a quote both with and without the collision and comprehensive coverage, then determine whether or not it still makes sense to carry full coverage on your vehicle. Keep in mind that the insurance company will only pay you the fair market value of your car if it is totaled in an accident.
- 4). Raise your deductible to save money on your monthly premiums. Many drivers and homeowners automatically take the lowest possible deductible, but that strategy results in higher monthly premiums. Consider directing the money you save on your premiums to a special savings account that you can use in the event of a claim.
- 5). Get quotes for several different deductible levels, and use those quotes to determine the optimum deductible level for your needs. For instance, if raising your deductible from $500 to $1000 saves you $100 a month, it would take less than half a year to save enough money to cover the extra liability.
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