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Home And Auto Insurance Rates Can Be Lowered

By Mike Heuer


Most people are aware they can have the same insurer provide coverage for their home and auto insurance policies and get discounts on each. While having auto and home insurance coverage through the same property and casualty insurer can result in discounts of up to 20 percent on each plan, there are other ways to obtain rate reductions.

Choosing the right home can make a big difference in how rates are applied. A gated community generally is safer than those without gates, and insurers will provide breaks on their rates as a result. Living closer to a fire department also can make a difference in the cost of insuring a home. Knowing in advance which kinds of homes get lower rates for insurance coverage can help to lower the overall cost of home ownership.

Upgrading homes also can result in significant savings on insurance policies. Older homes are more vulnerable to electrical fires, and electrical issues cause nearly 68,000 home fires and nearly $870 million in losses each year, according to the U.S. Fire Administration. Installing new wiring can not only reduce home insurance rates but also might qualify the owners for a tax credit on their federal and state income tax returns and possibly on their property taxes.

Likewise, installing a new heating system or new water pipes can result in lower insurance rates. Home insurers know newer pipes aren’t corroded and are less likely to cause water damage while newer heating systems are less likely to fail or result in damages. Tax credits also might apply with such upgrades while also resulting in potentially lower heating and energy costs.

Just as choosing the right home to buy can provide reduced insurance costs, choosing the right vehicle also can result in cost savings. Some vehicles are inherently safer than others, such as an SUV compared to a sports car. And other vehicles are less prone to theft than others. Vehicles equipped with air bags do a better job of protecting occupants and result in rate discounts from most insurers.

Buying the right vehicle can result in automatic savings on insurance plans for them even before considering other discounts, such as having auto and home insurance provided by the same company.

Most home and auto insurance firms will give discounts for maintaining good credit ratings as well as continued coverage over the years with them. When no claims are filed over a period of time, many insurers will reduce rates and even forgive policyholders for a rare claim being filed when they are at fault in an accident.

Other potential discounts include taking safe driver courses, having a good driving record and not allowing a teen to operate the vehicle, if one should live in the household.

There are many ways for people to reduce the cost of the home and auto insurance costs, and shopping around for the right insurers in advance and sticking with them so long as their rates remain among the lowest for the most comprehensive coverage available can save a great deal of money for policyholders.

One comment

There is no ONE insurance conmpay that is right for everyone everyone is rated individually and all companies have different likes and dis-likes , different credit tiers, different business models, and many other factors that can vary your rate and a QUOTE is ONLY a quote until the policy is issued.Typically, insurance rates will vary from State to State and can even vary by ZIPCODE! It also will depend on the type of car/truck, coverages, limits of liability, and driving record. Some companies run credit scores and MOST run a motor vehicle report and CLUE (Comprehensive Loss Underwriting Exchange) report to see about undisclosed accident involvement. A lot of these reports might get a BETTER finding with your SSN BUT we CAN get this info WITHOUT your SSN.The best thing to do is call a LOCAL independent agent or broker. Don’t go across town, or to some other city look for someone CLOSE. Just look in the phone book for the PIA or Big I (Trusted Choice) logos and you will find a professional licensed agent that will be able to help you solve your insurance problems, and give you rate comparisons of several different companies. An independent insurance agent will normally have a dozen different companies and if he cannot help you, he should be networked with other local agents that can. In my agency, we have companies that do NOT run a credit score and welcome drivers with less than perfect driving records and specialize in youthful operators!Most of the replies on this site say go to this on-line carrier or that on-line carrier or that 1-800 number but I’m sure that when you do, you will find some impersonal computer user with a script to work from and you won’t be able to talk with the same person every time you have a problem!Good luck, drive RESPONSIBLY and I hope this helps!

by Kenya on April 13, 2014 at 10:14 am. Reply #

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