6 Ways to Get the Best Insurance Rates

Shopping for insurance—whether for your car, home, or life—can feel like a necessary evil. We know we need insurance, but in the vast and often-confusing marketplace of options, it can be tempting to simply go with the cheapest choice and hope for the best.

But there’s good news: You don’t have to choose between great coverage and a great price. These six simple strategies will help you find the right policy to meet your unique needs, goals, and budget.

1. Shop competitively. You’ve likely heard it many times, but “compare and save” is more than a tagline. Insurance policies can vary wildly from one provider to the next, so it’s critical to compare multiple quotes before signing the dotted line. Shopping around for insurance, like most things, can pay dividends.

2. Bundle smarter, not harder. “Bundle and save” is another overused phrase in the insurance biz, but it holds a lot of truth. Combining auto, home, and other policies under one provider can save you up to 25 percent—just be sure that you’re adding coverage where you actually need it.

Beyond the cost savings of bundling insurances, having all your coverages in one place (i.e., one member portal or agent’s website) makes it that much easier to manage renewals, claims, adjustments, and periodic coverage reviews.

3. Keep an eye on your credit score. In addition to factors such as driving records and auto or home loan terms, most insurance companies use credit-based insurance scores to determine what you’ll pay. The better your score, the better your chances of locking in a great rate for the coverage you need.

If your credit score is less than ideal, don’t fret. By adopting a few good habits—like closing unnecessary accounts and setting up automatic bill payments—you can start building stronger credit in just a few months.

4. Leave no (savings) stone unturned. Insurance companies offer a slew of savings for everything from paying off your car note to signing up for paperless billing.

A reliable insurance agent will check in every so often to let you know about eligible insurance discounts, but it never hurts to set a calendar reminder. Reviewing your policy each year, or as you reach major financial milestones or life events, will help you avoid paying for coverages that no longer reflect your circumstances.

5. Balance your premiums against your deductible. If you can afford to pay more out of pocket in the event of a claim, raising your insurance deductible can yield significant savings on monthly premiums. Just make sure that the deductible amount you choose realistically reflects your financial big picture.

6. Familiarize yourself with the lingo. Like any legally binding contract, insurance policies contain jargon and acronyms that can be confusing for the average policyholder. It helps to have a basic understanding of these key terms, which all play a role in how much you could pay out-of-pocket:

• Exclusions: Which items or events are not covered?
• Coverage limits: Are they sufficient for your needs?
• Claims process: How easy is it to file and receive payment?

This is another area in which independent agents are worth their weight in gold. They can walk you through your selected policy in layperson terms as well as offer solid advice based on your unique needs and budget. 

Getting the best insurance rates is all about shopping with a game plan. With these easy strategies—and asking for a little help when you need it from a qualified independent agent in your state—you’ll enjoy peace-of-mind protection, whether you’re protecting your valuable assets with home and auto insurance or your precious loved ones with life insurance.