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Practical Tips to Save on Your Home and Auto Insurance Costs This New Year

Dec 22, 2022

Home Insurance

Practical Tips to Save on Your Home and Auto Insurance Costs This New Year

Home and auto insurance costs fluctuate all the time due to factors such as a change in risk size and inflation. As the new year begins, you could be staring at higher premiums on your home and car insurance policies. This is mainly because of the inflation that has terrorized the U.S. and the world at large for the past year. The cost of living has generally gone up in many sectors, and insurance is no exception.

The good news is that despite the prevailing economic situation, you can still lower your home and auto insurance costs.

Here are some practical tips to save on your home and auto insurance coverage costs.

Ways to Lower Home Insurance Costs

Insurance companies typically charge policyholders based on the risk at hand, the amount of coverage, and the economic situation, among other factors. For instance, living in a crime-prone area makes you a candidate for high home insurance premiums. Charging high insurance rates is the insurer's way of shielding themselves from financial risk. Even so, insurance companies usually give discounts if the policyholder makes efforts to lower the risk. In September 2022, for instance, California became the first state in the U.S. to lower home insurance premiums for policyholders who made improvements to lower the risk of fire in their homes. You can also lower your home insurance costs by doing the following:

  • Bundling your insurance policies
  • Shopping around
  • Renovating your home
  • Relocating to a safer zone
  • Paying for minor claims out of pocket
  • Avoiding high-risk properties such as tree-houses, trampolines, aggressive dogs, and pools
  • Installing a home security system
  • Weatherstripping your home during winter

Ways to Lower Auto Insurance Premiums

The cost of car insurance depends on factors such as your driving history, age, car model, credit history, and the number of insured cars. For example, premiums are generally high for teenage drivers considering the high risk involved. Due to their inexperience and lack of care, they are more likely to be involved in collisions. As they grow older, the cost of insurance reduces gradually. It starts increasing again once the policyholder becomes a senior citizen.

If you’re currently paying exorbitant premiums on your auto insurance coverage, use the following tips to lower them in the new year.

  • Maintain a clean driving record by observing traffic rules and driving while sober.
  • Install safety features in your car, including anti-theft devices
  • Compare premiums across multiple insurance providers
  • Downgrade your car, particularly if you own a luxury or sports car
  • Maintain a good credit history
  • Avoid filing claims for minor accidents and pay out of pocket instead

Always inform the insurance provider whenever you make significant changes that may lower your insurance costs. This way, they will conduct underwriting afresh to determine whether you qualify for discounts.

How Reata Insurance Group Can Help

Would you like to find the best home and auto insurance rate for your needs? At Reata Insurance Group, our team will help you find the right plan. Contact us today to get started on your customized home and auto insurance policy.

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