Raise your hand if you live in Colorado and your insurance premium increases every year. You can’t see me, but my hand is high in the air.

I work in the insurance industry, but that doesn’t make me immune to the same rate increases as everyone else. My policies have increased 4 years in a row.

To understand more about WHY the rates are increasing in Colorado, read our blog: 5 Reasons Insurance Rates Keep Increasing in Colorado.

We’re all in the same boat when it comes to increasing rates. I understand how overwhelming it can be to see 15-30% increases year after year. Especially when you haven’t filed a claim. If you’re anything like me, once you see that your rate has increased yet again, your first thought is to try to find a way to lower your rates.

Many agents will offer to lower your liability limits or remove coverage to save you some money. If you go that route, it’s important to understand what coverage you’re giving up and how it’ll impact you if you have a claim.

For example, if you remove comprehensive coverage and a hailstorm hits your car, your policy won’t cover any of the damage. And if you remove collision coverage and then get into an accident, you’ll be paying for those repairs out of pocket.

If you lower your liability limits, you’re leaving yourself exposed for a lawsuit if you’re at-fault for an auto accident.

At Integrity First, we focus on educating our clients about their coverages and risks.

Our agency’s vision is:
By operating with Integrity and focusing on education, we will change the perception of the insurance industry.

We understand the importance of sticking to a budget and we try to provide responsible options to achieve that.

Here are some ways to lower your premium without sacrificing important coverages:

1. Review your policies

Ask your agent to do a full policy review to ensure everything is being rated correctly. Some things to consider on each of your policies are your marital status, education level and occupation. Believe it or not, those can impact your rates.

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2. Review Features of the Home

Closely review your home insurance. Specifically, the features of the home listed on the Replacement Cost Estimator (RCE). The RCE is how insurance companies determine what it would cost to rebuild the home.

When reviewing the RCE, you should check the building style (ranch, 2-story), size of the garage, foundation type, and number of bathrooms. You should also specify the finishes in the kitchen and bathrooms, like the countertops, cabinets, and appliances.

Check out our blog How Much Home Insurance is Enough? to learn more!

If anything on the RCE isn’t accurate, be sure to tell your agent so it can be corrected. It’s important to make sure the features of your home are correct on the RCE. If you’re over insuring your home, you could be paying more than you need to.

3. Multi-Vehicle/Multi-Driver Discount

Insure all the vehicles in your household on the same policy. Most insurance carriers offer a multi-vehicle discount proportional to the number of vehicles on the policy. So if you have 2 vehicles on the same policy you’ll likely pay less for each than if they were on different policies.

There’s often a discount for multiple drivers as well. Insuring all vehicles and drivers on the same policy could qualify for two discounts.

4. Longevity/Loyalty Discount

Whenever possible, it’s best stay with one insurance carrier for at least 3-5 years. This is because many companies offer a Longevity or Loyalty discount.

It’s common for insurance companies to offer an “advance quote” discount to get you in the door, but that discount falls off at the next renewal. If you switch your insurance every year, you’re getting “teaser” rates.

Once you’ve had your coverage with one company for 3 years, you start to get a discount for loyalty. So in the long run it’s more beneficial to stay put.

5. Take care of your Insurance Score

An Insurance Score is made up of several factors, including your credit, age, claim history, and insurance history. This helps insurance companies determine the risk of insuring you.

Your insurance score directly impacts the rate you’ll pay for insurance. Luckily, there are some things you can do to better your insurance score, and earn lower premiums.

Work on improving your credit and making payments on time. You should also avoid filing multiple claims and stay with the same insurance carrier for at least 3 years. When you switch insurance frequently, it lowers your insurance score, which causes higher premiums.

Read more about an insurance score and how to take care of yours in our blog Insurance Score: What Is It And Why Does It Matter?

6. Increase your Deductibles

Another option to lower your premium is to increase your deductibles. There is a direct correlation between the premium and the deductible on a policy. The higher the deductible, the lower the premium.

On an auto policy, look at increasing your comprehensive and/or collision deductibles. Be sure to check with your lienholder first if you have a loan or lease!

On your home policy, you could look at increasing only your Wind/Hail deductible. Most carriers allow you to have different deductibles for All Perils and Wind/Hail. That way you’re not subject to a higher deductible for all losses, only those caused by wind or hail.

7. Take part in a Telematics Program

Many insurance carriers offer telematics programs to help customize auto rates. The specifics vary by carrier, but in general they’ll monitor your driving through either an app or a plug-in device.

They’ll look at how hard you brake, how quickly you accelerate, the time of day you drive, and the miles driven. Some programs may also look at distracted driving and other habits.

Make sure you understand the program fully before signing up. Telematics programs can be a good way to save money, but some insurance carriers can increase your rates if your results aren’t good.

8. Teen Driver Discounts

Having a “youthful” driver in the household is almost guaranteed to make your car insurance rates skyrocket.

A driver is considered youthful until they have 10 years of driving experience. Since most teens get their permit at age 15, they’re generally considered youthful drivers until they turn 25.

Most insurance companies offer Good Student and Driver Training Discounts. Those discounts are usually only available for drivers under 25 who are in school.

To get the Good Student Discount, the driver has to have B average or higher. As long as the driver has taken a driver training course, they should qualify for a Driver Training Discount.

Some companies also offer a Teen Driver Discount. To qualify, you need to have your insurance with the carrier for at least a year before adding the youthful driver. If you have a teen that will be getting their license in the next couple years, now is the time to start looking. Call us to find a carrier that offers the Teen Driver Discount so you can qualify when your kid gets licensed.

9. Multi-Policy Discount

One of the largest discounts offered is the Multi-Policy Discount. If you have your auto and homeowners or renters policy insured with the same company, you can often get a discount between 20-30%. The Multi-Policy discount can also apply to policies for trailers/RVs, motorcycles, ATVs, and boats.

Find out more about how you can Save Money by Bundling Your Home and Car Insurance.

10. Low Mileage Discount

Many insurance carriers offer a discount for vehicles that aren’t driven a lot. The discount amount and the mileage requirements vary by carrier. Most carriers offer a discount if the vehicle is driven under 8000 miles/year.

I heard a co-worker once say “The most expensive policy you can buy is the one that isn’t there for you when you have a claim.”

That really resonated with me because it couldn’t be more simple or more true. You could pay for the cheapest policy out there, but if you have to pay out of pocket for a claim, have you really saved any money? If anything, you’re probably going to pay a lot more.

Our agency will do everything we can to save you money without sacrificing coverage. We understand that saving a few dollars a month isn’t worth it if your policy won’t pay when you have a claim.

There are many ways you can lower your premium without giving up important coverages. Although it may help the budget now to remove or lower some coverages, it could cost you a lot more in the long run.

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