The Two Best Ways to Save on Home and Auto Insurance

Here are the two best ways to save on home and auto insurance according to Living Rich by Spending Smart: How to Get More of What You Really Want:

1. Compare premiums.
2. Raise deductibles.

My thoughts on these:

1. Simple, effective tips. They are basic, but also will represent the majority of the savings you'll find on home and auto insurance.

2. Instead of "compare premiums", I suggest you "shop around". But it's really the same tip.

3. We have high deductibles and plan on using our insurance only in case of a major claim. If you use it for all sorts of minor claims here and there, your rates are bound to go up. So we added a bit more to our emergency fund, raised deductibles, and will only use them in case of a big, big problem.

Comments

[Everyman]

Another thing that we did was to make sure that we had the necessary items for discounts, such as fire extinguishers, alarms, etc.

As far as cars go, we also like to go with a higher deductible. I barely drive, as I ride the bus to work (but still need insurance, as I do still own a car and do still drive once in a while). Odds are smaller that I'll have an accident...plus we have a rainy day fund to help us out if needed!

[Todd]

Shopping around is key. I moved to Massachusetts for work and not by choice and quickly learned that the auto insurance rates were set by the government with no competition. It proved to be about 75% more than when I was living in Michigan. This past spring, much to the chagrin of some people, they introduced competition...guess what? After shopping around yesterday, my rates have drop to a little over HALF of what they were. YES!!!

Oh yea, also have the highest deductibles allowed helps too.

[Clint]

Any suggestions on how to shop around if you have an Umbrella policy? Typically with an Umbrella policy (otherwise known as personal catastrophe insurance) most places I know of require that you have all your insurance, auto, home, whatever, thru them. Is there anyway to pick and choose the lowest cost insurance provider for each area and yet keep an umbrella policy?

["Mo" Money]

Surveys show that only about 20% shop for their insurance. This is important for getting the best deal on your insurance.

[FMF]

Clint --

I'd have them quote on the whole package -- including umbrella insurance.

[Super Saver]

FMF,

For me, staying with one insurance company for all policies, having low claims (luckily), and getting older :-) has kept our premiums low. I used to compare, but every time other companies were amazed at my premiums and couldn't even come close.

On the service side, the company has been excellent at handing the few claims I've had.

As a result, I don't bother shopping any more.

[Topwaystosave]

There's quite a few things you can do to save money on auto insurance. I think the most important is shop around, but also drive safely is the most important. The penalties over time can cost you thousands.

Also check with your company if you work for a larger sized company. I get about extra 10 percent off with liberty mutual because of where I work.

[California Insurance Buyer]

We received a direct mail piece from an insurance agent in California, Bovet Insurance Services, and they were able to save us a ton. They checked around with many different companies and found us the best deal out there. They gave us good advise as far as higher deductibles and whether they made sense for us. It was nice dealing with an agent that new the business and was able to use more than one carrier to compare for us.