Budget Friendly Insurance: Protect Yourself Without Breaking the Bank

One of the most common ways to cut your rates is by bundling policies. Most insurers offer a discount when you bundle your car and home insurance with them, and some even give a discount if you add a renters, condo, or life policy to the mix. The amount of the discount varies by insurance company, but State Farm advertises savings of up to $1,273 annually when you bundle home and car insurance.

You can also reduce your rate by switching providers before your next renewal date. Some companies provide as much as 10% in discounts for people who switch before their current premium is due.

It’s a good idea to get a quote from multiple insurers when you’re evaluating your options. Some of the largest providers will advertise specific multi-policy savings on their websites, and there are services like Policygenius that can get you personalized quotes in minutes.

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You can also save money by going paperless and opting to pay your premium automatically. Insurers will often give you a discount for doing so, which means less paperwork and hassle for you. Additionally, there are a number of other discount categories that you might qualify for if you’re a long-time customer, a good student, or belong to certain professional or business organizations. Talk to your insurance agent for more details.

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3. Get a Safe Driver Discount

Car insurance rates have spiked in recent years, and a high premium can take a bite out of any budget. Fortunately, there are several car insurance hacks you can use to lower your rate and stick with your budget.

1. Switch insurance companies.

Loyalty to one provider might feel convenient, but it could be costing you big. Many companies increase their rates over time, assuming that customers won’t shop around. Instead, compare prices at least once a year. There are online sites, like Insurify and Simplifi, that allow you to check quotes from multiple providers in minutes. Changing insurers can save you hundreds of dollars a year.

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2. Get a safe driver discount.

Your driving record has a major impact on your car insurance costs. Accidents and traffic violations can increase your rates dramatically, so it’s important to drive safely to earn safe driver discounts over time. Many insurance companies offer telematics programs that let you track your driving behavior with an app or plug-in device to reward good habits and discourage bad ones.

You can also earn a safe driver discount by taking a defensive driving course. The courses usually cost $25 or less, and they can be taken once every few years to maintain the discount. Some states also have laws that require insurers to offer discounts to drivers who complete these courses.

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