How to Get Cheaper Insurance Rates

Nobody likes to pay for insurance. I’m in the business and very aware of that so I am always looking for ways to help people get cheaper insurance rates. The critical part though is to minimize insurance costs while remaining protected with the right amount of coverage.

Don’t Over or Under-insure

Under-insure and you might be left carrying the cost of damage, theft or loss of property. Over-insure and you will be paying more than you have to. The right balance will be different for each person depending on your assets, your risk profile and your insurance history.

Set the Right Deductible and Liability Levels

One way to lower your premiums is to set a higher deductible. which means you accept more risk for covering small losses. Insurers tend to have deductibles ranging from $300 to $5,000, so if you are okay with paying a $1,000 deductible, your rates will be lower.

Reduce Your Risk Factors

Ideally you want to reduce the risk factors that lead to claims.

• Avoid car accidents by driving defensively and never while impaired
• Install an anti-theft system
• Caution lending your car you’re lending your driving record too!
• Driving in the US? Consider higher liability coverage since a claim there will cost you more
• Keep your driving record clean (avoid those costly tickets!)
• Install a tracking device if you are a safer than average driver. The insurance companies pay for the device and you earn discounts as you drive less, have slower acceleration and more moderate braking.

• Install a home security system, which qualifies you for a discount
• Install smoke and carbon monoxide alarms; also good for a discount
• Clear the snow and ice off your walkway (to avoid lawsuits!)
• Install a sewer back up or back flow valve to qualify for a discount
• Install good quality locks on your doors and windows
• Have good credit? This can qualify you for even larger discounts!

These are just a few examples of ways to reduce your risk, which means lower insurance rates for you. And combining your home and auto policies is always a good source for discounts.

Should I Make a Claim?

If you experience a loss that exceeds your deductible, I always recommend you speak with your broker first to understand what the impact might be on your premiums if you make a claim. The best decision might be to cover the loss yourself in order to keep lower premiums long-term.

Comparison Shopping

It’s always a good idea to shop around to find the lowest insurance rates but many people don’t realize that an insurance broker will do the shopping for you because brokers represent a number of different insurance companies. Instead of dealing with a bank or an agent who represent only one company, my best advice is take advantage of an insurance broker who will shop for you saving you time and money.

Questions?