decrease your insurance premiums

How to decrease your insurance premiums and open up extra cash in your monthly budget for other priorities in your life! We routinely do this.

Insurance is one of those necessary expenses in our lives. It might not be a fun expense, but when you are able to make a claim instead of gouging your savings account — or worse, going into debt — than it suddenly becomes clear why almost everyone carries some kind of insurance.

While insurance gives us peace of mind, we should still attempt to get the most amount of coverage for the lowest amount of cost. After all, who wouldn’t rather spend monthly insurance premiums on something fun or to buffer savings? Here are some ways I have received discounts over the years through the various insurance companies I have held policies with.

Pssst: this is a great strategy to use for how to save money on a routine basis. 

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How to Lower Car Insurance Payments

  • Self-Insure to Raise the Deductible or Go without Collision: I was recently in a car accident, and the fault was my own. While I only had liability insurance and no collision (I have not carried collision insurance for ten years), I was glad that I made this choice even after paying the bill to repair my car. Since I have an emergency fund and essentially have self-insured enough to not have collision insurance, I have saved on the premium for many years. The cost of repair was small compared with the premiums I would have paid. Even if I had the collision insurance, I would have needed to pay a deductible, which would have wiped out most of the benefit. This is not going to work for everyone, and of course if my car were totaled it would have cost much more. But this option paid off for us.
  • Ensure Your Car Insurance Policy Covers You for Rentals: You can confidently decline the rental insurance at the car rental counter if you know that your car insurance company will cover you. This could save a decent sum of money over time, especially if you travel a lot.
  • Take a Driver’s Safety Course: Fortunately for me, we are required to take a driver safety course at my job every three years (paid for by my employer). A nice benefit of this is my insurance company offered me an 18% discount on my premiums with the certificate!

Decrease Your Homeowner’s Insurance

  • Ensure Accuracy in Property Representations: Our homeowner’s insurance company had added an extra 100 square feet to our home on the homeowner’s policy, and I was able to prove this to them by showing a recent home survey. It added an approximate $50 savings each year!

Decrease Your Property Insurance

  • Check Your Homeowner’s Policy for Jewelry Insurance: Instead of purchasing a separate policy to insure your precious jewelry (wedding/engagement rings, heirlooms, etc.) check with your homeowner’s insurance to see what it will cover. Our policy covers up to $3,000 worth of jewelry without costing us extra on the premium (I asked for a discount if we were to take off the $3,000 in coverage and they said it made no difference).

Decrease All Your Types of Insurance

  • Consolidate Insurance Plans: We have our car insurance with the same company as our homeowner’s insurance. Not only does this mean less paperwork and people to deal with, but it also amounted to a savings of $200-$300 per year. In the past when I rented an apartment, my car insurance company gave me a discount of 10% on my car insurance by purchasing rental insurance through them (I did not have many belongings then, so the renter’s insurance was very cheap after the 10% auto policy discount).
  • Call and Ask for a Discount: Sometimes getting a discount is as simple as asking “is that the best you can do” (from GetRichSlowly.org)? It is helpful to arm yourself with competing quotes from other companies when you ask this. However, even without competing quotes I have been offered up to a 5% discount on insurance premiums just because I asked.

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