Saving money on auto and home insurance

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In the tight economy, Jeff and I are looking for ways to cut costs. Last night we decided to call our insurance company to see if there was anything we could do there. We hit the jackpot!

First, do not cut your coverage. We have very high insurance limits for personal injury (100K/350K) on the cars and we have replacement value on the house. If you do not have replacement value, you may not receive enough money to rebuild and replace if you have a total loss. Make sure you are protected.

The reason we called the insurance company was because we have been with the same insurance company since 2000 and have not really updated our info since we bought the house. I found out there were a few errors in the homeowner’s policy, which lowered the value of our home by over $20,000. Remember, we have replacement value insurance so they have to rebuild our house to specifications if we have a total loss. Fixing these errors saved us approximately $200 a year on our homeowner’s policy. It’s a good idea to try to go with the same company for auto and home since you’ll get a multipolicy discount. If you haven’t already looked into this, now is the time. I even added computer coverage to my homeowner’s so if a computer gets lost or stolen (even from my car), my deductible is only $50.

Then, we moved on to the cars. My husband has a new employer which got a better discount than his old employer. He has also finished his degree since the last time we got a quote and I got my graduate degree. The higher your level of education, the lower your premium. We also got a discount for one of my associations, Beta Gamma Sigma Society. Make sure you list all your associations when you call the insurance company. There should be discounts through your college, job or associations you belong to. We have the same coverage we had before, but with the updated information, we were able to save…… Are you ready for this?….

Over $550 a year on the auto.

So for about 30 minutes of our time, we saved over $750 a year on our insurance. That is not chump change. Plus, we didn’t have to switch companies. I’m really happy with our insurance company and now I have over 750 more reasons to be happy. Not a bad morning, huh?

Don’t forget these discounts:

  • Education – discounts for degrees so make sure they have accurate information.
  • Employer and association memberships – make sure to have them check multiple discounts because some organizational discounts are better than others.
  • Multi-policy discounts – multiple cars and multiple product lines, including life or disability insurance.
  • One-time payment discount – many insurance companies give a discount for paying your policy in one lump sum. Some also charge for monthly billing! Make sure you check.

There are so many discounts out there, you really need to be vigilant. Keep asking questions. You never know what you might get a discount for.

What discounts do you get on your insurance plans? Please share your comments below.

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