It seems like my house insurance keeps creeping up every year, even though I don’t make a claim.
The insurance companies have a very simple explanation why, of course. Vicious weather is more commonplace than ever, which has pushed up the number of claims. Low interest rates also hurt insurers, who invest premiums for a profit before paying out policyholders.
In response, I began doing something I should have done a long time ago. Each year when I get my house insurance renewal in the mail, I take it to three insurance brokerages for quotes. Whoever comes in at the lowest number wins.
The savings can really add up. I was paying just under $1,000 annually for home insurance, a number I got by taking large deductibles. After shopping around I got a quote for less than $700 for better coverage. If I can maintain that gap for a decade I’m saving some serious cash.
Emboldened, I did the same thing with my car insurance. By bundling it with my house insurance, I was able to save an additional $200.
The most interesting part is the three quotes from the three different brokerages varied widely, even for the same insurance company. Don’t be content to just let one brokerage say they can check quotes for multiple insurers.
It was an easy and painless way to save $500 per year. And even if you don’t save anything, at least you know you’re paying the lowest rate.
