The higher your deductible -- the amount you agree to pay out-of-pocket before the insurer begins to pay for a loss -- the lower your premium and the less likely you will file small claims that could lead to a rate hike or even cancellation. If you raise your deductible from, say, $500 to $1,000, you can cut your bill by as much as 25%, according to the Insurance Information Institute.
Many insurers now impose a percentage deductible rather than a dollar-value deductible. Sometimes the deductible depends on the peril -- a common example is 2% of the home’s insured value for hurricane-related losses, or the first $2,000 on a $100,000 policy. If your insurer gives you a choice of a percentage or dollar-value deductible, make sure that you understand what the percentage applies to before you accept the percentage version. (Percentage of dwelling limit? Dwelling limit plus the value of contents? Damage as defined by my contractor or by the insurance adjuster?)
Ask about any discounts for which you might be eligible -- such as reductions for an alarm or sprinkler system, fire extinguishers, or an impact-resistant or noncombustible roof. You might also get lower rates if you’re a senior, your home is updated and in good repair with no unsafe conditions, or you live in a retirement or gated community. Those discounts could trim your premium by 5% to 10% each. You might save 10% to 15% on your premium if you buy your homeowners and auto policies from the same insurer, but it’s a good idea to shop the policies separately as well in case you could do even better.
Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
-
What Is a Qualified Charitable Distribution (QCD)?Tax Breaks A QCD can lower your tax bill while meeting your charitable giving goals in retirement. Here’s how.
-
Embracing Generative AI for Financial SuccessGenerative AI has the potential to reshape how we approach learning about and managing our personal finances.
-
Five Ways to Save on Vacation Rental PropertiesTravel Use these strategies to pay less for an apartment, condo or house when you travel.
-
How to Avoid Annoying Hotel Fees: Per Person, Parking and MoreTravel Here's how to avoid extra charges and make sure you don't get stuck paying for amenities that you don't use.
-
How to Appeal an Unexpected Medical Billhealth insurance You may receive a bill because your insurance company denied a claim—but that doesn’t mean you have to pay it.
-
Amazon Prime Fees Are Rising. Here’s How to Cancel Your Amazon Prime MembershipAmazon Prime Amazon Prime will soon cost $139 a year, $180 for those who pay monthly. If you’re a subscriber, maybe it’s time to rethink your relationship. Here’s a step-by-step guide to canceling Prime.
-
How to Haggle for Almost AnythingSmart Buying Learning how to haggle is an invaluable skill. These strategies will help you negotiate a better price for just about any product or service.
-
Disability Insurance Can Provide COVID CoverageCoronavirus and Your Money If you are concerned about long-term complications from COVID-19, consider disability insurance coverage.
-
21 Things You Can't Return to Amazon — Either Online or In-StoreDid you know there are things you can't return to Amazon? Before tossing these items into your shopping cart, be sure to read Amazon's return policy first.
-
How to Avoid a Charity Scampersonal finance Scammers never quit, even when you're trying to be altruistic. But you can avoid getting duped if you do your homework.
