The Best Way to Lower Insurance Costs

Here's another item on Money magazine's list of 25 rules to grow rich by. Today's tip lists the best way to lower insurance costs:

When you buy insurance, choose the highest deductible you can afford. It's the easiest way to lower your premium.

It's the open secret of the insurance game: File a claim, your premiums go up. For that reason, it's in your interest – as much as possible – to shoulder small damages out of pocket.

For home insurance, raising your deductible from $500 to $1,000 could save you 25% on premiums, according to the Insurance Information Institute.

Yep, it's a good tip. We have our deductibles as high as possible.

Of course, if you follow this advice, you need to be sure to have the money to pay the deductible set aside in your emergency fund in case a big claim arises and you need to take advantage of the insurance coverage.

For more tips on saving on insurance, see these posts:

• Another Advantage of Education: It Saves You Money on Your Car Insurance

• Buying and Saving on Car Insurance

• Save on Car Insurance

• Save on Car Insurance, Again

• Ten Ways to Save Money on Car Insurance

• 16 Ways to Slash Your Health Insurance Rates

• Comments: Getting Homeowner's Insurance (And Saving Money Too)

• Get Healthy and Re-Quote Insurance

• Getting Homeowner's Insurance (And Saving Money Too)

• Good, Better, Best Money-Saving Ideas: Insurance

• Some Insurers Pay You to Get Healthy