Ways to keep insurance premiums low

The cost of insurance can sometimes be more than you can afford to pay. But there are a number of ways to reduce the amount you have to spend and still retain the coverage you need.

Amount of Coverage

For anyone on a tight budget, you should review your insurance policies every year and see if you have the proper amount of insurance. Insurance needs change over time and you might be able to reduce or eliminate some of your insurance coverage and keep the premium savings in your own pocket. While it is never a bad idea to have a little more coverage than you really need, if you are looking to keep insurance premiums low, do not buy more coverage than absolutely neccessary.


Many different types of insurance have a deductible built in to the price of the premium you pay. The rule is simply that the higher the deductible, the lower your premium will be. You need to be a bit careful when opting for a higher deductible to get a lower insurance premium. Do not make the mistake of raising your comprehensive and collision deductible up to $2,000 to save $25 or $50 in the premium you pay. You would then have to come up with $2,000 to repair your car if you are in an accident. Keep the deductible at a reasonable amount like $250 or $500 so you will not be hit with a huge bill in the future.


There are all sorts of discounts being offered by insurance companies and it is up to you to ask your agent if any might apply. One of the most common discounts is for people who buy several policies from the same insurer. You can usually expect to save about 10% when taking advantage of this type of discount. Other discounts for being a safe driver or having safety equipment on your car are also plentiful. You can receive a discount on your homeowner’s insurance, particularly in hurricane and tornado prone states, by taking preemptive steps to enforce the structure of your home and mitigate damages in the event of severe winds.