CAR & HOME INSURANCE

Auto & Homeowners Insurance Tips

Multiple policies with the same company often receive a discounted rate. Most insurance companies will give you a discount if you purchase your home and auto insurance with them. Consider placing your auto insurance and home insurance with the same company. It can save you as much as 15% on the cost of both your home and auto policy.

Research an insurance company before you buy a policy. Experts say to research insurance companies before you buy. There are four independent rating services that track the financial health of US insurance companies. These services are Standard and Poor's (standardandpoors.com), AM Best (ambest.com), Weiss Ratings (weissratings.com), and Fitch Ratings (fitchratings.com). Each company has a comprehensive web site and rates most American insurance companies.

Review your insurance annually. We recommend that you personally review your insurance coverage each year. Your insurance contract should come in the mail about 30 to 60 days before your policy renewal. This will give you ample time to review the different coverage areas to be sure that everything is accurate. Make it a point to be sure there is nothing incorrect on your policy. Companies can make mistakes and you might catch one that could end up costing you money, or even worse, end up exposing you if you have a claim.

Pay your insurance premiums on time. Always pay your insurance premiums on time. If you don't do this, it could cost you a lot of money in the long term. Auto and home insurance companies will review your claim history and payment history. If you make a habit of waiting until the last minute to pay insurance premiums, your insurance company could non-renew your insurance policy.

Keep good credit. Your car insurance rates are based on driving record, claim history, age, location, car model, and credit score. You might appear to be an ideal client if you have never had a claim or a traffic ticket, but a poor credit score could cause a company to refuse, or cancel, your policy.

Underwriting for home owner insurance coverage is also affected by your credit. If your score does not meet a threshold set by the insurance company, they will either refuse to offer you a policy, or they will place you in a higher rating tier for your coverage. Of course this means that you will pay a higher premium than others with a better (higher) credit score.