Saving Money on Your Insurance Policy

I don’t know about you, but I love saving money on things I don’t like paying for. I know, no one likes paying for anything, but the way I see it, there is a definite difference in paying for a vacation versus paying an electric bill. Or gasoline. Or taxes. Or insurance. Speaking of the latter, you might just be paying too much for yours. Now, you could check with different companies to make sure you are getting the lowest cost, but you could also save money just by reviewing what you already have.

With insurance, there is potential for big savings because the companies often change the way they rate policies and the types of discounts they offer. It is especially important that you review your rate if you have had a policy for a rather long time without having a policy review.

Let’s take a look at some of the ways you could be saving money on your insurance policy.


First, the obvious – coverages. When was the last time you looked at these? Months? Years? Never? Hopefully, not the last one. But kidding aside, you might be paying for coverages you don’t even need. Maybe you have a vehicle with physical damage coverage because that is what you needed ten years ago. Maybe you started a policy with the highest liability limits available because the price was great and you could afford it. Now, not to say you should not get the most insurance you can afford, but what if, as time passed, you got a few traffic violations and an accident and now it is barely affordable for you. Lowering your limits could have a huge impact on the price.


Another way to save is changing your deductible. Maybe you have them set at $100, when putting them at $500 (if you could comfortably afford it) could save you money.

Annual Mileage

Some insurance companies rate based on vehicle mileage. Drive infrequently? That could save you money. Others give discounts if you install a device that monitors your driving usage. Avoid peak traffics times? Drive defensively? No hard vehicle stops/starts? Usually, you would receive a percentage off your premium, which could mean big savings depending on how much you pay.

Driving Record

One of the biggest impacts on your premium is, of course, your driving record. Now, you can’t do anything about legitimate violations and accidents, BUT, errors do occur. Make sure you are not being rated based on erroneous information. In addition, things on your record do not have an impact after a certain amount of time (designated by your company). Some will remove them if they are no longer in the chargeable period, but you are not set to renew until a later date. Never hurts to ask.


Do you have single policies scattered amongst multiple insurance companies? Look into one company taking care of multiple insurance needs. Companies usually give multi-policy and multi-vehicle discounts.


Discounts. Everyone loves discounts. Fortunately, insurance companies offer some pretty good ones depending on your situation. Married? Multiple vehicles? College degree? Clean driving record? How about your vehicle? Does it have safety features? Are you in the Military? Do you pay in full? Have had no lapse in coverage? There are countless more, but you get the point. Discounts vary widely amongst insurance companies. See how many you qualify for.

Now that you know some of the potential money-savers (there are others), speak with your licensed agent to have your policy reviewed to be sure you are receiving the lowest possible premium.