There are a number of things that you can do to get cheaper home insurance quotes, saving yourself huge amounts of money every year. In this guide we’ll show you some tips you can use to bring those costs down without sacrificing your coverage.
The most important thing to bear in mind is that there will always be a better deal out there. Don’t take the first deal that you see, no matter how generous it seems.
A good deal can wait for another day, so before you accept anything, see what other companies can offer you and use comparison search engines to help you find the best deals.
Use the Same Provider for Multiple Policies
Insurance companies understand that most of their customers will purchase several policies, covering auto insurance, life insurance and home insurance, and in order to get your business they will offer you huge savings if you get all of these policies with them.
In some cases, insurance companies will add a life insurance plan as a freebie, and when you consider just how much such plans can cost (learn more in our Guide to Life Insurance) this could save you a small fortune.
To take advantage of these bundles deals you don’t necessarily need to be looking for all types of insurance in one go, as there are ways that you can switch. Just see what kind of discounts they can offer you if you bundle multiple policies into the same deal. If they don’t offer you anything special then don’t signup with them, because someone else will.
Boost Your Security and Safety
In the eyes of the home insurance company, a secure home is a home less likely to be burgled. If you don’t have an alarm system, you don’t have secure doors and you throw caution to the wind where fire, carbon monoxide and other threats are concerned, then you could be paying high amounts every month.
A fire alarm, house alarm and carbon monoxide detector can seem like an expensive outlay, but they will pay for themselves in the long run and will also give you the peace of mind that every homeowner deserves.
According to one expect, a house alarm that is connected to a central station, thus allowing for a fast response, can reduce premiums by as much as 10%. Add fire alarms to the mix and you could save up to 30% on those premiums.
Boost Your Credit Score
Your credit score follows you around your entire life, affecting everything from your chances of getting a loan or credit card to your chances of getting a job. A good credit score can also bring those insurance premiums down.
It doesn’t make much sense at first glance, but it’s all about statistics. Insurers look at your age, your sex, your lifestyle and your profession and they check these against national averages to see if you are high or low risk. The statistics show that someone with a low credit score is more likely to make claims, and quite significantly so.
Take a look at our guide to How to Improve Your Credit Score to learn about the quick and simple things that you can do to bring that score up. Don’t worry if it has taken a sizable hit over the years. There is always something you can do to improve it and even the smallest of improvements can help you to secure a cheaper home insurance policy.
It pays to switch and if your insurance provider is increasing the cost of renewing your policy even though you have not made any claims and they have no reason to bump up the cost, then switching is the best thing you can do. But with home insurance, loyalty tends to rewarded more and many companies will give you a discount if you have been with them for a number of years.
They want to reward you for staying loyal, knowing that by providing such a discount they are locking you in as a customer, one that will stay with them for many more years to come. Not all companies offer this discount and it tends to only be between 5% and 10%, but every little helps and it’s well worth taking the time to find a company that offers a loyalty discount like this.
If you have been with the same company for many years, you can also simply ask them for such a discount. The worst they can do is say no, and they might just surprise you by answering in the affirmative.
Increase Your Deductible
The higher the deductible, the less you will pay every month. Of course, if something does happen then a higher deductible could put you seriously out of pocket, but it all depends on what you want to cover.
If you’re someone who only sees house insurance as a last resort for when everything goes horribly wrong, then a high deductible is ideal. Just remember that the higher the deductible, the greater the gamble, so don’t go too high unless you can afford to cover small losses out of your own pocket.
Prepare Against Natural Disasters
If you live in an area that is prone to earthquakes and storms then you can expect to pay considerably more that the national average. But there are a number of things you can do to prepare your home and safeguard it in the event of a natural disaster.
There are guidelines set by the Insurance Institute for Business & Home Safety that can help you to prepare your home in such a way. They have guidelines for each natural disaster, detailing a list of things that you can do to prepare your home in a downloadable file.
Follow the instructions outlined in those files to reduce the cost of your home insurance premiums.
Choose a Cheap Home Insurance Provider
The policy you choose and your circumstances will typically have more of an impact on the amount you pay than the insurance company you choose. However, there are exceptions and it’s always worth running some comparisons to see if you can save yourself a few dollars.
Take a look at the following companies and the areas in which they specialize to find out if they can help you with cheap home insurance:
- Allstate: Cheaper for new homeowners.
- State Farm: Cheaper when opting for full, extended coverage policies.
- MetLife: Cheaper when using rare replacement coverage options.
- Liberty Mutual: One of the cheapest when looking for fast repairs, replacements and more.
You can also try the following cheap home insurance providers, comparing them to all of the other providers listed on this page:
- 21st Century