Tips on lowering premiums | Missouri Department of Insurance, Financial Institutions & Professional Registration (2024)

FAQs

How can you reduce your insurance policy payment answer? ›

Choose a deductible that makes sense

Choose a property deductible that makes sense for you. If you only need insurance if the claim is more than $5,000, choose a $5,000 deductible. Higher deductibles will reduce the premium.

1. Increase your deductible. Depending on your insurance provider, paying a higher deductible (the amount you pay out of pocket before your insurance coverage kicks in, in the event of an incident) is typically a quick and easy way you can decrease your auto insurance payments.

Ask for a higher deductible

Typically, the higher the deductible, the lower the premium. Increasing your deductible from $200 to $500 could reduce the cost of collision and comprehensive coverage by 15% to 30%, according to the Insurance Information Institute, while upping it to $1,000 could save you 40% or more.

Increase your deductible

It's an out-of-pocket expense that's effectively "deducted" from your total claim settlement. If you can afford a higher repair bill than your current deductible, consider raising it to a limit you feel comfortable with. Typically, the higher your deductible, the lower your insurance premium.

For example, if you pay for AAA roadside assistance, you may be able to shave similar coverage off your auto insurance policy. Some newer cars already include some form of roadside assistance, he added. A common tactic for lowering monthly premiums is to choose a policy with a higher deductible.

Some factors that may affect your auto insurance premiums are your car, your driving habits, demographic factors and the coverages, limits and deductibles you choose. These factors may include things such as your age and your driving record.

The best cost reduction strategies track all operating expenses. They calculate every penny related to storage, supply, and office space. The key is comparing those operations costs to the established budget. If a business is way over budget in any area, it should consider this a red flag.

What is an effective way to reduce the premium paid for a homeowners policy? ›

Raise your deductible

The higher your deductible, the more money you can save on your premium, so if you can pay above the minimum $500 or $1,000 deductible, for example, you may reduce the cost of your homeowners policy.

A quick way to reduce your premium is to raise your homeowners insurance deductible, the amount you pay if you have to make a claim. If you have a $1,000 deductible, you could save an average of nearly 13% a year by increasing it to $2,500, according to NerdWallet's rate analysis.

Tip #1: Take Higher Deductible

One way to minimize an increase in your site's insurance premiums is to ask your insurer for a higher deductible. Insurers will charge lower premiums if you're willing to assume more risk of paying losses out of your own pocket before turning to your insurance.

Auto insurance prices are non-negotiable, so you can't ask your car insurance company to lower your rates. However, there are several ways to find more affordable premiums. Compare quotes from multiple insurers. Although states regulate the cost of car insurance, different companies offer varying rates.

What is a Premium Reduction Plan (or PRP)? Section 125 of the Internal Revenue Code allows employers to set up a Premium Reduction Plan as a benefit for employees enrolled on certain plans. With the implementation of a PRP, employees may pay for their portion of premiums (or costs on such plans) on a pretax basis.

Getting an Insurance Discount Through DriversEd.com

One way to receive a discount of up to 10% is to enroll in a drivers education or a defensive driving course. A drivers education course is especially important in the case of teen drivers or others who may expect high insurance premiums.

Taking a California traffic school course online can help lower your insurance rate, especially if you have a good driving history or it is a minor offense.