Article provided by McLean & Dickey Insurance
These days everyone is looking for ways to reduce their spending and protect their savings.
Cutting back on streaming services or purchasing fewer pre-packaged foods and cooking at home instead of going out can have a substantial impact on your wallet. Insurance is one of those essential things that most of us wish we could spend a little less on.
Follow the tips below to maximize any potential savings on your insurance premiums.
Shop around.
Shopping around for the best rates and the best coverage is a great way to save on your insurance. However, there are so many options available that it can seem overwhelming. That’s why it usually makes sense to use an insurance broker. A broker has the expertise to compare coverage and rates from numerous insurance companies and present you with options. They can advise you on the ins and outs of coverage so that you can then choose a policy that fits your budget and your needs.
Remember, insurance brokers work for their clients and not for insurance companies, so they have your best interests at heart.
Bundle your insurance policies for a better rate.
Most insurance companies reward their clients with discounts if they purchase more than one type of coverage from them. In some cases, bundling two or more policies, such as home and auto insurance into one, can cost significantly less than purchasing separate coverage from different companies.
Depending on the insurance company and where you live, you could save up to 20% with a multipolicy discount.
Consider increasing your deductible.
Choosing a higher deductible will mean a lower premium and if you don’t make a claim for several years, you can save a substantial amount in the long term.
Choose a deductible that you would be financially comfortable paying in the event of a loss without undue hardship. Speak to your insurance broker about a range of deductible options to find the right balance for you.
Be strategic about filing claims.
You might be tempted to file a claim for every issue that comes up. After all, as long as it’s more than your deductible, you might as well get some money back.
Unfortunately, this might not be the best approach. Insurance is intended to help you recover from large losses that can have a significant impact on your finances. In fact, many insurance companies reward clients who have been claims-free with a discount. If you repeatedly file small claims, this will likely have an impact on any claims-free discounts and result in an increase in your premium.
Discuss what options are available to you with your insurance broker before filing a claim.
Allow for a credit check.
If your insurance provider asks for your permission to run a “soft” credit check, saying yes might save you money if you have a good credit score.
Research has shown that high credit scores are linked to less risky behaviour and insurance companies offer discounts to clients with good credit ratings. A soft credit check won’t impact your credit score, but it might save you money.
Leverage any discounts that might be available to you.
Speak to your broker to see if there are any additional savings available to you on your insurance policies. For example, if you’ve retired recently you might benefit from an additional discount on your auto insurance policy because you aren’t likely to be driving the same kind of distances.
When it comes to home insurance, upgrading your heating, plumbing and electrical systems may reduce your premiums. Installing loss prevention devices such as sewer backwater valves or sump pumps can not only protect you in the event of flooding, but also lower your rates. Be aware that discounts available to you are dependent on a number of factors including where you live and your claims history, so discuss your eligibility for discounts with your insurance broker.
WE know insurance. Talk to us about the best way to save.
Review your insurance policies annually and talk to your broker to see if any changes need to be made. If your circumstances have changed (as in the aforementioned retirement), you might be paying for coverage you no longer need, or you may be missing out on a potential discount.
Our brokers are experts in making sure that you have the right coverage for your needs so reach out to us for help.
Learn more about McLean & Dickey Insurance only here or talk to someone today at 705-325-4461.