11 Ways to Lower Your Insurance Premium Without Sacrificing Coverage
Insurance rates have increased for many households, but there are still smart ways to lower your premium without cutting the protection you actually need.
At Family Union Insurance, we believe saving money is important—but so is making sure your policy will do what you expect when something goes wrong. Here are 11 practical ways to potentially reduce your home and auto insurance costs while maintaining strong coverage.
1. Consider Higher Deductibles
Increasing your deductible can help lower your insurance premium because you are agreeing to absorb more of the cost of a smaller loss.
Just make sure the deductible you choose is an amount you could comfortably afford if you had a claim tomorrow. Saving a few dollars each month isn't worth creating a deductible you couldn't reasonably pay.
2. Bundle Your Home and Auto Insurance
Bundling your home and auto insurance with the same carrier can often unlock significant multi-policy discounts.
It can also simplify your insurance and, depending on the carrier, may provide more stable overall pricing than having your policies spread across multiple companies.
That doesn't mean bundling is always the cheapest option, but it is something we evaluate whenever we review a client's coverage.
3. Consider a Safe-Driving Telematics Program
Many insurance carriers now offer telematics or safe-driving programs that reward good driving habits.
Depending on the program, the carrier may evaluate things such as mileage, braking, acceleration, time of day and other driving behavior.
If you're a safe driver, participating in one of these programs can sometimes create meaningful additional savings.
4. Make Sure Your Mileage and Vehicle Use Are Accurate
Has your commute changed? Do you work from home now? Have you retired or started driving significantly fewer miles?
Make sure your insurance company knows.
Annual mileage and how a vehicle is used can affect insurance pricing. You don't want your policy rated based on a long commute you haven't made in three years.
5. Look for Payment Discounts and Avoid Unnecessary Fees
How you pay for your insurance can sometimes affect what you ultimately spend.
Depending on the carrier, you may be able to save by:
Paying your premium in full
Enrolling in automatic payments
Choosing paperless billing
Paying through EFT or ACH
EFT and ACH payments can also help you avoid credit or debit card processing fees that some insurance companies charge.
Individually these savings may seem small, but they can add up over the course of a year.
6. Protect Your Driving Record
Tickets and accidents can affect insurance rates for years. Safe driving is still one of the best long-term ways to keep your auto insurance costs down.
If you do receive a traffic ticket, consider speaking with an attorney about your options rather than automatically paying it. Depending on the situation, an attorney may be able to help resolve the citation in a way that keeps it from appearing as a moving violation on your Motor Vehicle Record (MVR).
A clean driving record can make a substantial difference when insurance companies determine your rate.
7. Keep Your Credit Healthy
Many insurance companies use credit-based insurance information as one factor when determining rates where permitted by law.
Monitor your credit, correct errors when you find them, pay bills on time and protect your overall credit history.
Good credit isn't just important when borrowing money—it can potentially affect what you pay for insurance as well.
8. Tell Your Agent When You Replace Your Roof
Always tell your insurance agent when you replace your roof.
A newer roof can make a major underwriting difference with some insurance carriers and may unlock additional insurance options and/or reduce your current rate.
Roof age has become increasingly important to homeowners insurance companies, particularly in areas that experience frequent wind and hail losses.
Don't assume your carrier automatically knows that your roof was replaced.
9. Maintain Continuous Insurance
Don't intentionally let your auto insurance cancel or lapse.
Continuous prior insurance can make a significant difference in both eligibility and pricing when you shop for coverage in the future.
Even if you sell your vehicle and don't immediately purchase another one, it may be worth discussing a non-owner auto policy with your agent so you can maintain continuous insurance.
A lapse in coverage can easily cost someone an additional $100 or more per month when they purchase another vehicle and need insurance again.
Before cancelling your policy because you temporarily don't own a car, talk with your agent about your options.
10. Don't Switch Insurance Carriers Over Every Tiny Savings
Sometimes switching carriers absolutely makes sense. That's one of the benefits of working with an independent insurance agency—we can evaluate multiple insurance companies rather than being tied to just one.
But don't automatically give up good coverage, carrier tenure or a strong insurance package to save only a few dollars each month.
When comparing insurance, look at the entire picture:
Premium
Coverage limits
Deductibles
Endorsements
Claims experience
Carrier quality
Prior insurance history
Long-term value
The cheapest quote is not always the best insurance policy.
11. Carry Respectable Liability Limits
Carrying stronger liability limits is important for protecting you today, but it can also help when you shop for insurance in the future.
Some insurance carriers consider your prior liability limits as part of their underwriting and pricing process.
More importantly, liability insurance protects your income, savings and assets if you cause a serious accident.
Saving a few dollars by carrying the lowest liability limits available can create a much larger financial risk.
Save Money Without Sacrificing Protection
There are plenty of ways to make insurance more affordable without simply stripping coverage from your policy.
The goal should be to identify discounts, remove unnecessary costs, keep your information accurate and structure your insurance intelligently—while still protecting yourself from the losses you can't comfortably absorb.
At Family Union Insurance, we work with multiple insurance carriers and can help review your current home and auto coverage to identify opportunities to save while making sure important protection isn't being overlooked.