6 Tips To Help You Stop Your Insurance Increase

Insurance is essential to protect yourself and your family from any unpleasant surprises. Whether it was health, life, house, or car insurance, these policies will come to your aid when you need them the most. However, they come with a price; the annual or monthly premium you have to pay. Insurance premiums can differ from one year to another, and they usually go up. The premium increases for various reasons such as having had any accidents or if your vehicle is not in top condition. Fortunately, you are not stuck with those premiums for the rest of your life. Here are 6 tips that can help you stop your insurance increase.

1. Shop Around

Before you acquire an insurance policy for the first time, you should browse through different insurance companies and get their rates and policy details before committing to one. You will find the policy that best suits your needs while reducing the premium you have to pay monthly or annually. If you are already paying a premium but are not satisfied with the increase, you can also shop for another policy that has a lower premium and a better overall deal. However, don't pick an insurance policy based on price alone; you should also check recommendations from your network or look for online reviews on the insurance company you are considering.

2. Raise Your Deductibles

When you file a claim and your insurance covers most of the costs, you will still have to pay a deductible which is the difference between the total cost and the cost covered by the insurer. Typically, you agree with the insurer on the deductibles when you sign the contract. When it comes to renewing your contract, you may ask to increase your deductible to lower the premium you have to pay. For example, if you raised your deductible from $200 to $500, you will reduce the premium by 15% to 30%. However, you will have to pay that amount if you get into an accident.

3. Claim Big Amounts Only

When we acquire an insurance policy, we want to make the most of it to cover any unplanned costs. However, claiming coverage increases the policy premium as you will be considered reckless, negligent, or have health problems. Though insurance coverage will help you get compensation for any damages that you are not at fault for, these compensations will damage your rating for insurers. For example, if you got a broken tail light, you may want to repair it by changing it yourself; you will spend a small amount of money and keep your premium low.

4. Look for Discounts

Each insurance policy has some kinds of discounts. For example, if you took a driver’s ed course, you may have a discount on your auto insurance. If you are keeping your house in top condition, you may be qualified for a discount on your home insurance premium. You should look for the things you can do to reduce your insurance costs. Additionally, you can have a discount if you have more than one type of insurance coverage from the same company.

5. Improve Your Credit Rating

Your driving or health records are a big factor in determining the amount you have to pay per month as a premium. This makes sense because anyone who has a record of filing several claims per year will cost the insurance company more money. However, insurance companies also put into consideration your credit rating while calculating your premium. A high credit rating will show the insurers that you are a responsible person and will do anything to keep yourself and your family safe, which means lower chances of needing to file a claim.

6. Get Rid of Coverage You Won’t Need

Insurance policies can have various coverage options that you might not actually need. Go over the policy in detail and find out what options you won’t be needing. Ask your insurer to get rid of these options to reduce the overall cost of your coverage including the premium. However, don’t remove vital coverage plans to reduce your premium as you may need those in the future.

Premiums usually increase each year, but if you follow these 6 tips, you might find yourself paying the same amount or less every year. Make sure to shop around if you are unsatisfied with your current insurer as you are under no obligation to continue with them. Raising your deductibles might be a good strategy if you know that you can afford the deductible in case of a claim. Don’t claim every little accident that you go through as it can increase your premium the next year. Improve your credit rating, look for discounts, and ditch any unwanted coverage to lower your premium.