Have you been noticing your auto and homeowners’ premiums going up? You are not alone. According to the Insurance Information Institute, auto rates from 2020 to 2023 have been increasing 5% to 20%. And homeowners’(HO) rates have been going up 7.6% from 2020 to 2021.
What steps can you take to reduce your rates (all assuming you have not filed claims in the last 5 years)? Here are our top 5:
- Ask your insurance company for a discount. If you’ve been a long-term client, they may want to keep you and may offer a discount. They may suggest ways to reduce your premiums including combining your insurances (Auto & HO) with one company, taking defensive driving classes and upgrades you can make to reduce the chances of a claim.
- Increase your deductibles. Raising your deductibles can reduce your rates. Make sure you have enough in emergency savings to cover the higher deductibles.
- Talk to other insurance companies. Comparing rates can reduce your rates BUT be sure to check out the companies to see how reliable they are and their customer service. We recommend checking with Consumer Reports ratings.
- Make sure your credit score is in good stead. Having a good credit rating is one of the factors insurance companies use to determine your rates.
- Review your insurance coverages annually. For both price and benefits.
Need a second opinion on your financial path? Reach out and schedule your free initial consult.
