Three (Technically) Cost-Free Ways To Lower Your Home Insurance Premium

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While some people advocate shopping around to get a better quote for their home insurance, you don't necessarily have to take this approach. The next time your policy is about to come up for renewal, you can often have your premium lowered by making some changes that your insurance provider deems favorable. Although some strategies, such as having a home security system installed, have an associated cost, several others do not. Often, it's possible to put yourself in a position to save a significant amount of money on your home insurance without spending a dollar beyond what you're already spending. Here are three ways you can accomplish that goal.

Increase Your Deductible

Many homeowners go years without making a claim, which means the amount of their deductible is essentially immaterial. Check your policy to determine the amount that you'd have to pay in the event of making a claim, and then consider if you have the financial means to increase it. Doing so can save you money. It's not a good idea to increase your deductible if you'd have trouble putting the money together to make a claim, but increasing your deductible from $500 to $1,000 or even $1,500 can translate into a significant reduction in the amount that you pay for home insurance.

Switch To Annual Payments

If you look carefully at your home insurance policy, you'll see a notation of the annual cost of being insured and the amount of your monthly payments. However, paying your insurance monthly isn't the most cost-effective way to take care of this expense. Insurance companies provide their customers with a discount for paying in a lump sum once a year, and if your finances allow it, it's easy to make this policy switch when you renew your insurance. While there is technically a cost to this approach, you're essentially just rearranging the money you're already paying -- and reducing it in the process.

Group Your Policies

If you have a vehicle, recreational vehicle or even another property insured with a different company, moving them together onto the same policy as your home insurance is a simple way to save money. Insurance companies look favorably on this "bundling" approach and provide cost savings for their customers who group multiple policies together. There's an added bonus to this approach -- when you pay your bills at the start of the month, it's far simpler to pay one insurance bill than look after two or more different bills.

Speak to a local insurance agent or go to site to learn more.


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