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How to Save on Insurance

5 Strategies That Actually Lower Your Premiums

Most Americans overpay on insurance simply because they haven't compared rates recently. Studies show that switching insurers can save households $500โ€“$1,500 per year on auto and home coverage combined โ€” without reducing coverage levels.

  • Bundle home and auto. Purchasing both policies from the same insurer typically earns a 5โ€“25% multi-policy discount. This is the single biggest lever most consumers can pull.
  • Raise your deductible. Increasing your deductible from $500 to $1,000 can reduce premiums by 15โ€“30%. Only do this if you have the savings to cover the higher out-of-pocket amount.
  • Ask about discounts. Insurers offer dozens of discounts โ€” good driver, good student, paperless billing, home security systems, new roof. Most are never proactively offered; you have to ask.
  • Shop every 1โ€“2 years. Your loyalty is not rewarded in insurance. New-customer rates are almost always better than renewal rates. Set a calendar reminder.
  • Improve your credit score. In most states, insurers use credit-based insurance scores. Improving your credit can meaningfully reduce premiums over 6โ€“12 months.

What Does "Comprehensive" Coverage Actually Mean?

Despite the name, "comprehensive" auto coverage doesn't cover everything โ€” it covers damage to your vehicle from non-collision events: theft, fire, weather, falling objects, and animal strikes. Collision coverage handles accidents. Both are typically required if you have a car loan or lease.

For home insurance, standard HO-3 policies cover your dwelling and personal property against most perils (fire, wind, theft, vandalism), but explicitly exclude flood and earthquake damage. If you're in a flood-prone area, a separate NFIP or private flood policy is essential.

When to Review Your Coverage

Major life events should trigger a coverage review: buying a home, getting married, having children, starting a home business, or acquiring valuable property. Your coverage needs change โ€” your policy should too.