5 Ways to get Home Insurance on the Cheap
You don’t have to pay full price for your home insurance. There are lots of discounts you may be eligible for, including some very basic ones, and all you have to do is ask. Insurance companies try to provide an opportunity for customers to lower their premiums. Getting cheap home insurance doesn’t have to be complicated; it can be as simple as being a faithful customer or having good credit. Here’s a look at five simple money-savers you may not know about.
Carry Multiple Policies with the Same Provider
Insurance companies want your business and are willing to reward you for bundling multiple policies. Buying your home insurance and auto insurance from the same company can save you 30% in some instances. Increasingly, insurance companies are throwing life insurance into the mix, which means you may be able to save even more if you have your homeowners, auto and life policies under one carrier. Not only will you save money, but you’ll have more consistency in the way claims are handled and how you receive communications.
Boost your Deductible
Depending on the level of risk you’re able to handle, you can save a bundle on your home insurance premiums simply by going with a high-deductible policy. The deductible is the amount you’d have to pay out of your own pocket, before the insurance kicks in. Though high deductibles are more typical on multimillion-dollar homes, folks in lower tax brackets often will opt for the highest deductible possible. Just be sure you have the money to cover the deductible.
Install an Advanced Alarm System
Many people know that fire alarms, carbon monoxide sensors and burglary systems help to cut home insurance premiums. The discounts can be even greater with more advanced monitoring systems that report to a central location and alert first responders. Alarms connected to a central station can cut premiums by an average of 10%. Insurers offer the discount because the risks are minimized if your home is being monitored 24 hours a day. Alarm companies advertise that the insurance savings can be 20%, or even more. If the premium discount is your main motivation for buying a particular security system, it’s a good idea to double-check with your insurance company or agent to find out specifically how much you’re likely to save.
Be Loyal to Your Insurance Company
Insurance companies want you to remain a customer for as long as possible, which is why loyalty can pay off with cheap home insurance. Most insurance carriers offer some form of loyalty discount, typically in the 5% to 10% range. With some insurers, loyalty alone won’t yield savings. You might also need to stay claims-free or maintain multiple policies with the company.
Impress your Insurer with Good Credit
A high credit score can get you more than a favorable interest rate on a car loan or mortgage. It also can result in lower home insurance premiums. Insurance companies check credit reports to gauge whether a customer is likely to cost them in the future. But what constitutes a good credit score, for insurance purposes? It varies. Each company uses its own calculation to determine how much a credit score will impact premiums, which is another reason it pays to shop around and ask questions. For a married couple, the insurer will take the better of the two credit scores and use that to rate the policy.