The Reason You Need to Re-shop Your Home and Car Insurance This Weekend

If you haven’t paid much attention to your insurance in a while, you could be wasting major bucks.

The cost of car insurance has increased significantly over the last few years, and the same is true for homeowners insurance. While you can’t control the cost, what you can control is where you buy it and how much you pay.

Let’s get into how you can save money on insurance policies.

Homeowners Insurance is through the roof

Whether it’s milk, gas or anything else, when things start getting expensive, it’s time to go shopping to make sure you’re getting the best deal.

But as you begin your quest for less expensive insurance, the place to begin is with your current provider.

If your premiums have gone up, don’t be shy. Ask them why. Knowing why they increased it could actually give you some leverage in terms of getting it reduced, because some insurers may not have accurately accounted for factors such as your home’s location or he the mileage you drive every year.

Also, make sure you’re getting all the discounts you’re entitled to, from Safe Driver for your car to having smoke alarms in your house.

If you can’t get a better rate with your current insurer, comparison shop. Research other companies, review customer feedback and ask for estimates or quotes.

For example, one consumer recently shared how they were able to save $1,200/yr. on their policy, simply by shopping around.

They used Money - Home Insurance Survey to get it done. It doesn’t take long. Just answer a few questions and you’ll receive multiple quotes, as well as help to get you started with a new policy.

Auto insurance rates are accelerating

There are lots of ways to save on car insurance. Shopping around for for a better deal is one way, but so is raising your deductible.

Increasing your deductible from $250 to $1,000, for example, could reduce the cost of comprehensive coverage by 10% or more.

And make sure you have adequate coverage. While you want to pay as little as possible, be sure to get enough liability to protect your net worth. In short, don’t be penny-wise and pound-foolish.

Why you need to shop around at least once a year

Insurance companies are well aware that most people don’t understand insurance very well, and they hate shopping for it. Result? They’re free to raise your rates whenever they feel like it.

Keep them honest. Even if you’re happy with your current insurer, comparison shopping might reveal that your competitors have a deal that’s even better.

That’s why you need to re-shop your car and homeowners insurance at least once a year.

Don’t be surprised if you can save a ton. Customers on FinanceBuzz, for example, have saved as much as $892/yr. by comparing quotes and switching.

What about switching?

Don’t worry if you’re in the middle of a policy term. You’re free to cancel your policy at any time as long as you don’t have an open claim.

Reach out to your insurer about your cancelation options. You could email your agency to formally cancel after your new coverage kicks in. Or, you may be able just to call and cancel.

Important: Never let your coverage lapse. The National Association of Insurance Commissioners notes that if you go more than 30 days without coverage, your new company might charge you a higher premium than you’d pay if you stayed continuously covered.

And never, ever cancel a policy until the new one kicks in.