Insider Secrets to Scoring the Cheapest Insurance Rates

If you’re like many Americans, you may not take the time to compare multiple insurance quotes. This could be costing you money.

A survey by ValuePenguin found that only 26% of Americans have ever compared multiple quotes. That’s a shame, considering how much you stand to save. In fact, the average American who shops around saves 47% on car insurance and 76% on homeowners insurance.

And it doesn’t necessarily take a lot of work to get the job done, either. In fact, 82% of Americans who have shopped around report that it took them less than two hours to do so. That’s a small price to pay for extra cash that you can use for emergencies, to invest in the future, or to simply enjoy life.

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One of the main reasons people don’t shop around is that they think they’re getting a good deal with their current insurer. But this isn’t always the case. In a practice called “price optimization,” some insurers increase their prices to long-term customers in the hope that they will not shop around. However, if you do shop and find a lower rate from a competitor, your insurer will typically drop your rates to match.

For this reason, you should always be in the habit of shopping for the best rates on your home, car, and health insurance. This should be a priority, especially if you’ve recently experienced a major life event or have a history of at-fault accidents, traffic violations, or other issues that can cause your premium to rise. Similarly, it’s a great idea to shop for quotes every year, or whenever your policy is up for renewal.

2. Compare Companies

Insurance rates aren’t set in stone, and there is a lot of competition among insurers. This is why it’s important to shop around and compare quotes. You can do this by using an online comparison service, such as Policygenius, which will show you a list of personalized quotes from multiple companies. Alternatively, you can work with an independent agent or insurance broker, who will take your information over the phone or in person and then shop for rates on your behalf. These agents and brokers often have access to smaller regional carriers that may not be available through comparison sites.

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4. Review Your Policy Annually

Whether you have health, home, or car insurance, it’s important to review your policy at least annually. Doing so can save you money in the long run, as well as ensure that your coverage evolves with any life changes you experience. It also helps you avoid over- or under-insurance, which can lead to expensive out-of-pocket expenses.

When you do your policy review, make sure to read it all the way through and pay special attention to any changes that may have been made. This is particularly important for life insurance policies, as they can be complicated and subject to numerous rules and restrictions. In addition, it’s a good idea to review your policy prior to a major life event, such as a wedding or divorce, which could have an impact on the amount of coverage you need.

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