In the current economy, many people are looking for ways to temporarily lower insurance costs. When you have to make a choice between making the house or car payment and paying for insurance, you may have a difficult decision. Instead of letting your coverage lapse, look for ways to lower the cost and still retain insurance protection.
First, the easiest way to reduce your insurance cost is to raise your deductible. When you first purchased your protection, you may have asked for low deductibles to reduce the out-of-pocket expense when you are involved in an accident or a disaster strikes. By raising the deductible, your premium will be cheaper while you retain the same amount of coverage.
Another way to lower the cost is to combine policies with the same company. When you bundle your protection with the same insurance provider, they will probably offer a multiple policy discount. If you already have homeowners insurance, auto insurance and life insurance, save money by combining these policies.
A third way to temporarily lower the cost of insurance is to shop around for a new provider. Even if you have been with the same company for a long time, you may be able to find a cheaper rate. Insurance companies are in competition with each other and they may offer different incentives. Take a few minutes to compare quotes and you may be surprised by how much money you can save.
Finally, make sure you make your payments on time. This will not only save you money on late fees, but having good credit will also get you lower insurance premiums. Don’t cancel your insurance all together; just find a way to lower the cost until you are financially stable once again.