Keeping Insurance Costs Down

By Deborah Nayrocker

Dear Deborah: I’ve figured out that although homeowner’s and auto insurance policies are necessary, they are not inexpensive. What are some ways that I can keep the cost of insurance down? – Alex

Answer: There are several ways to help reduce the costs.

  1. Increase your deductible. If you opt for the highest deductible you can afford, this will lower the premiums you’ll need to pay. Be sure to have the savings set aside to cover the deductible, if needed.
  2. Combine policies. If one company provides several insurance products, ask about discounts available for combined policies. Typically, by combining policies insurance costs are lowered.
  3. Have a good credit history. In general, a better credit history lowers your insurance premium. Insurance providers will consider your credit history when determining how likely you are to file a claim.
  4. Ask about discounts. When getting auto insurance, ask about discounts for factors such as good grades, passing a driver safety course, and driving a car with antilock brakes. This writer knows from experience that these discounts add up over time.
  5. Shop around. Compare what different insurance providers have to offer. Choose the best insurance provider for your needs.


Deborah Nayrocker is an author and columnist. She is the award-winning author of The Art of Debt-Free Living and Living a Balanced Financial Life.

Copyright by Deborah J. Nayrocker. All rights reserved.

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