It’s no secret that insurance premiums have been on the rise in recent years. In fact, a study by the National Association of Insurance Commissioners showed that rates have increased an average of 27% since 2010. If you’re like most people, you’d like to pay less for your insurance coverage. Luckily, there are a few things you can do to lower your premiums without having to sacrifice quality or protection. Here are 5 easy steps to pay less for insurance!
1. Shop around and compare rates
One of the best ways to save on insurance is to simply shop around and compare rates from different companies. Thanks to the internet, this has become easier than ever before.
2. Don’t pay for coverage you don’t need
Make sure you’re not paying for coverage you don’t actually need. For example, if you have an older car that isn’t worth much, you may want to drop collision and comprehensive coverage.
3. Take advantage of discounts
Many insurance companies offer discounts for things like having a good driving record, being a homeowner, or taking a defensive driving course. Be sure to ask your agent about any available discounts.
4. Use one company for multiple policies
You can often get a discount if you use the same company for multiple policies, such as your homeowners and auto insurance. This is called a multi-policy discount and can save you quite a bit of money.
5. Improve your credit score
There are a few things you can do to improve your credit score, and in turn lower your insurance premiums. One is to make sure you keep updated on your payments, whether that’s for your mortgage, car loan, or credit cards. Another is to keep tabs on your debt-to-income ratio; this is the percentage of your income that goes towards debts each month. The lower this number is, the better it looks to creditors and the easier it is to get approved for loans. Finally, you can improve your credit score by paying down your balances; using less than 30% of your credit limit on any given card will help improve your score.
Making these changes can improve your credit score, which will lead to lower insurance premiums. Insurance companies often use credit scores as one factor in determining rates, so the higher your score, the lower your rates are likely to be. So if you’re looking to save money on your insurance premiums, improving your credit score is a good place to start.
By following these simple tips, you can lower your insurance premiums without having to sacrifice quality or protection. So don’t wait, start saving today!