7 Tips for Reducing your Home Insurance Bill

Who wouldn't like to lower their home insurance bill? Not too many homeowners are happy with the amount of insurance they pay. If you're one of these people, follow these tips and get the lowest rate possible on your insurance.

Tip #1 -- Shop for insurance every 5 years

Even if you're happy with your insurance company, get quotes from other insurance companies every five years to be sure you're getting the lowest rates possible. If you find a lower rate, tell your insurance agent and see if he will match it. If not -- switch.

Tip #2 -- Longevity rates

It pays to be aware that some insurance companies offer "longevity rates." Discounts for customers who have been with the company for a long period of time are readily available. Often it's a discount of 5% for customers who have been with the company for three the five years, and 10% for six years or more of loyalty.

Tip #3 -- Ask about discounts

Insurance companies have long lists of discounts they offer. Be sure you are getting all of the discounts that are available. Ask your agent for a list. Find out which ones you qualify for, and then bring them to the attention of the agent.

Tip #4 -- Increase the deductible

The easiest way to lower your insurance bill is increasing the deductible - the amount that comes out of your pocket. Through an increase of $500 to $1000, savings add up to 25%. Raising it by $2500 can save you as much as 30%.

Tip #5 -- Automatic payments

Many insurance companies lower your bill if you agree to automatic payments. Due to the fact that it saves them money in the accounting and billing department, they're happy to make this accommodation.

Tip #6 -- Additional structures

Most insurance policies charge you to cover additional structures - whether you have any or not. If you don't have stand alone sheds or garages, make sure you aren't being charged for this coverage.

Tip #7 -- Filing claims

You pay for insurance so you figure you should file claims when you need it -- right? Many people do this, but be aware that filing more than two claims in three years significantly raises the insurance bill. A good rule to follow: do not to file a claim if it isn't $1000 over the deductible.

No one likes to pay for insurance, but it's a necessary fact of life. Make it as easy as possible on yourself and your wallet by following these tips and get the lowest insurance bill possible.

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