Renewing Your Homeowners Insurance without Comparing Quotes can Cost You
Before you renew your current home insurance policy, it might be worth knowing that comparing quotes before you do could save you money on your premiums. Insurance rates change over time, fluctuating up and down to meet market demands and to modify the costs according to the latest statistics. If the rates have gone down since the last time you purchased a homeowners insurance policy, you might save money by going with a new company.
That is not to say that your current insurance provider would not pass on breaks to you, but renewal policies may not be the first to receive the new rates, so changing companies could net you savings that you would not otherwise see for a few more months.
Another factor that could result in a savings is that many insurance companies offer special discounts to people who have existing home coverage but choose to switch. During the quote process, you will be asked about other insurance coverage you have, and the answers you provide will be calculated into your quote.
Changing to a company you have other policies with is a good way to save. Insurance companies commonly extend discount to existing customers who purchase a new insurance line, it is their way of thanking you for your loyalty. Besides, statistics show that insuring a person with multiple policies reduces the overall risks for the insurance company. It is rare for two policies to result in claims at the same time, so insuring you under different types of policies actually reduces the risk for the insurance company.
And while you are getting new quotes, consider saving money by adjusting your deductibles. When you raise your deductible, the result is lower premiums, but be careful not to set the deductibles so high that you can't pay them out of pocket. It might sound like a good idea to raise the deductibles as high as you can to save money, but if you have to file a claim and cannot afford the deductible; your coverage won't do anything for you at all.