Premium payments for home and car insurance take a big bite out of the budget in most American households today. The good news is that there are many factors are involved in how premium rates are determined, so it is often possible for families to find ways to reduce these costs. If you believe that the current premiums for your family's auto and home insurance policies are too high, here are some effective options you can use to try and reduce these costs.
Raise the deductible amounts
Families who currently have auto and home insurance plans with low- to mid-range deductible amounts can save money by raising the deductibles to a higher amount. Since this will mean that an accident or damage claim will require more money out of pocket, it is wise to consider setting aside the amount of money saved on premium payments after raising the deductible amount.
Allowing the savings to accumulate by depositing it in an interest-bearing money market account until it reaches an amount equal to the new, higher deductible amount. Then if your family does have an accident or damage claim, the amount of the higher deductible is readily available without putting any pressure on the household budget.
Get credit for home improvements
Home insurance providers use the condition of the home as one of the factors for deciding premium amounts. Most homeowners try to keep their homes in good condition by routinely making periodic upgrades and improvements throughout their ownership. But many may not realize that they can benefit from informing their home insurance agent of each of major improvement. Many home insurance companies typically offer premium reductions for improvements such as a new roof, a new HVAC, plumbing, or electrical system, as well as new windows, insulation, or siding. If you have already made this type of upgrade to your home or are planning to do so in the near future, make sure to notify your insurance agent and ask about their policy for reducing the premium for this type of upgrade or improvement.
Be willing to shop for better rates
Insurances companies that provide car and home insurance are in business to attract customers and earn a profit. This means that they are usually willing to offer competitive pricing in order to attract new customers. Families who feel that their current premiums are too high for home, car, or other types of insurance should always consider shopping around for better rates or coverage by contacting reputable insurance brokers and agents in their area at least once per year.
For more information, contact homeowner's insurance agents in your area.