How shopping helped me save over $500 on insurance

by B Simple

in Insurance

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A great way to simplify your personal finances as well as save you some money is to do a little shopping. I am not talking about going to the mall to shop for clothes. I am talking about just picking up the phone to do some comparison shopping.

I recently received my annual renewal for my homeowner’s insurance. Upon reviewing the renewal notice, I was a little shocked at the cost of my renewal. What even shocked me more was the fact that my coverage was not increased. I had been insured with this company the past four years and I never had a claim. So I called my agent to ask why such a large increase in premium. They stated due to recent natural disasters their cost has increased so everyone was seeing a significant increase in their premium. With that said, I decided it was time to do a little shopping just to see if other companies had increased their premiums also. If that was the case I was ok but I wanted to see before I renewed my policy.

I called three different companies to provide me quotes based on my existing coverage. All three companies came back with quotes lower than my new premium. So I decided it was worth my time to review these quotes in more detail as well as review the company as well. I did not want to change insurance providers just to lower my premium but receive less than satisfactory customer service or the insurance company not be there when you need them. After that review I was able to eliminate one of the three companies. This left me with two companies with very similar quotes. However, one company decide to provide me with a quote based on having my car insurance with them as well. When they applied the car insurance it lower the homeowner’s policy even lower and was able to reduce my existing car insurance also. So by combining my home owner’s insurance with my car insurance, I was able to save a little over $800 annually. Not only did I save but I also have more homeowner’s coverage than I had previously.

With a few phone calls and a little research, I started this year off with a $800 savings. Its a great way to start off the new year.

Here are some steps to help you do the same thing but I can not guarantee you will save as much:

  1. Question your rate increase?  Ask the reason for the increase.
  2. Call other insurance companies for quotes on a similar coverage
  3. Perform due diligence on the companies you receive quotes from
  4. Ask for quotes on homeowner’s and car insurance you may receive an additional savings.
  5. Don’t make decision based solely on price make sure coverage is same or better.  You don’t want to save by having less coverage.

Take Action

When you receive your next renewal notice in the mail, do a little insurance shopping before you send your payment.

Not only did I save some money but I also simplified my finances by consolidating my insurance carrier.

If you would like more tips to help you simplify your personal finances make sure you subscribe to simple financial lifestyle email newsletter and subscribe to RSS feed for blog updates.

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