Insurance is not always a top priority if you don’t have much spare cash. People often forgo insurance when they are struggling to buy food or put fuel in the family SUV. This is understandable, but insurance should never be regarded as an optional extra.
In some instances, insurance is compulsory. In many countries, it is illegal to drive a vehicle on a public road without some kind of insurance. You won’t be breaking the law if you don’t buy a homeowner’s insurance policy, but you could end up homeless or seriously out of pocket if a bad storm flattens your property or mice chew the electrical circuits.
Taking out home insurance is sensible, so if you are looking to save money on your policy, here are some useful tips.
It is always worth comparing prices when you need any type of insurance. Use price comparison websites to compare prices for the major insurance companies, but don’t forget to ring around some local insurance brokers to see what they can do for you. Local insurance agents such as State Farm Calgary are usually happy to price match a verified quite, and since they offer a more personalised service, it could be a smart move to go ‘local’.
Make Your Home More Secure
Home security is a weak spot. Many insurance claims are security related, for example, if an outbuilding is broken into and expensive tools stolen. Improving your home’s security will help to reduce the cost of home insurance, so it is worth investing in new doors and windows, improving locks, and adding a high-tech alarm system.
Check out the guidelines for each insurer to see what discounts they offer for higher specification home security.
Accept a Higher Deductible
Deductibles are the sums you agree to pay up front when you make a claim. The more you agree to pay, the lower your premium will be. However, bear in mind that a very high deductible may not bring your premiums down all that much.
Reduce the Risk of Claims
Each time you make a claim on your home insurance, it puts your premiums up. Insurers calculate premiums based on the likely risk of paying out on the policy, so if you have made recent claims, you can expect to pay more. Clearly, we buy insurance to protect us in the event we need to make a claim, but it is only sensible to take precautions against future claims.
Check to see if there is anything you can do to protect your home against bad weather or criminal damage. Invest in storm shutters or make repairs before they snowball into more expensive problems. Your insurer will thank you for being a proactive homeowner.
Ask for Discounts
Many insurers offer discounts to homeowners if they take out a second or third insurance policy. Buy your auto insurance and home insurance policies from the same agent and you should be offered a discount. If not, try a different company.
Don’t accept the first price you get. There are always ways to find cheaper insurance, but be careful not to go with a company that is rated badly for customer service.