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6 Tips to Save Money on Your Home Insurance

6 Tips to Save Money on Your Home Insurance

Homeowners will pay drastically different insurance prices depending on several various factors. Many stick with the same policy year after year, without even looking at the possibility to save. Before purchasing a home insurance policy, consider these six tips to make sure you’re getting the most value.

Shop Around

Most people opt to go for the first home insurance quote they hear instead of shopping around. That’s a good way to pay a lot more than you would if you were patient. It takes more time to get a variety of quotes, but it’s ultimately the best way to save money on home insurance. It’s important to find the cheapest home insurance rate when you live in a metropolis, like Toronto. The cost of living in major metropolitan areas means insurance companies need to be competitive with one another. Shop around to get the best price and your wallet will thank you later.

Raise Your Deductible

The amount you pay for your deductible can drastically lower your monthly premium costs. If you can afford to raise your deductible up to $1,000 you could save upwards of 25% from your monthly premium. If you live in a disaster-prone area, you may have additional insurance costs tied to your premium. Hazard policies can have different deductibles than your standard home insurance, so make sure you take that into account, too.

Bundle and Save

Companies that offer both home and auto insurance often offer bundle discounts. Consider bundling your home and auto insurance for up to 15% off your total insurance costs. Before you decide to go with this option, make sure it is the cheapest. Sometimes you may find car insurance offers from a different provider for much cheaper. This example ties back into rule one, which is shop around for any insurance you buy.

Improve Home Security

Home insurance providers offer discounts for homes that are well-protected. For example, you can get up to 5% off for smoke detectors and burglar alarm installation. A sophisticated alert system that ties into the police and fire stations may net you up to 15% off your insurance bills.

Ask for Discounts

It never hurts to ask your insurance agent if you qualify for any discounts. Some insurance companies offer seniors a discount on their home insurance. Asking your agent for any discounts that can apply to your unique situation is a great way to save money and stay with the insurance provider you prefer.

Good Credit Score Is A Must

Your credit score can have a major impact on your life beyond just getting approved for loans. Many home insurance companies will periodically poll your credit score to determine your financial risk. You could be liable for a rate hike if your credit score is too high. You can check your credit score on a regular basis to have any errors corrected quickly. A case of identity theft could drive up your insurance rates unexpectedly so be vigilant.

Avoid Flipping Back and Forth

Many insurance companies offer a discount for customers who are long-term policyholders. The period will differ between companies but the average seems to be 5% off for customers who stay up to three years.

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