There is no point in paying more for insurance than necessary. Here are some suggestions for achieving this goal.
Select Appropriate Coverage and Limits: Buy only needed coverages, and select policy limits appropriate for the largest potential losses.
Retain Risks: That Are Affordable. Retain risks that you can afford by raising a deductible, for example—and only insure against losses that would be financially unaffordable.
Take Advantage of Discounts: Most insurance companies offer discounted premiums for policyholders who buy multiple policies (for example, both automobile and homeowner’s insurance) from them.
Engage in Loss Control: Many companies charge lower premiums to policyholders who take steps to reduce the probability or severity of loss. For example, discounts are available if you install dead-bolt door locks or a fire extinguisher in your home. Ask your agent what you need to do to qualify.
Shop Around for the Lowest-Cost Coverage: Insurance premiums from one company can be twice as much as that charged by another company and for essentially the same coverage, so considerable savings can be realized by seeking quotes from multiple agents and direct sellers. To obtain a quote, simply telephone an agent or direct seller and provide some basic descriptive information. You can also use a Web based quote service.