Discount is a word all people love to hear, especially if it involves a required expense. Insurance is no different; it is something that you either should have or are required to buy. But if you look into the different savings options that are available, you can save a huge amount on your policies. Here is a list of our Top 10 ways to save money on your personal and business insurance.
- Home and Auto Multi-Policy: Most companies will provide a multitude of discounts on your personal insurance for bundling your home, auto, life, and umbrella insurance. Some companies are very vocal about offering these cost-saving options, but most companies will offer 3% to 5% off of your total premium for each additional policy you buy with their company, possibly saving you hundreds.
- Business & Life: Buying a life insurance policy can give you a discount on your home and auto insurance, as stated above, but it can also save you money on your business’s insurance. Company executives who buy a life policy through the same company that they use for business insurance can get a significant percent off of their business package policies. For large companies, or those with large coverage amounts, this could be a huge money-saving opportunity.
- “Free” Life Insurance: With the right agent and underwriter, you can get life insurance coverage for zero total cost to you. What your agent has to do is calculate the savings on either your business policy or personal policies by adding a on life policy discount. Then you match the amount you save to a life policy with an equivalent premium, thus providing life insurance (generally term life) for a zero net cost.
- Chamber of Commerce: Joining your local chamber of commerce can give you a discount of up to 14% on your business’s general liability, workers’ compensation, and commercial auto policies. For a moderately sized business, this savings can pay for your Chamber dues and leave some money left over. Certain insurance companies will also offer a discount on health insurance and personal home and car insurance for Chamber members.
- Drug-Free Workplace: Drug-free workplace certification gets a 5% discount on your Workers Compensation insurance in most states, but Georgia gives a full 7.5% discount. Based on data stating that drug-users are about 5 times more likely to file a claim, business owners can save money and time for claim handling by implementing a certified drug-free workplace program. Even better, certification and training may be provided for free by your local Chamber of Commerce.
- Business Multi-Policy Packages: Just like the home, car, and life discounts, carrying your commercial auto policy, general liability, professional liability, workers compensation, etc. with one company can result in huge savings. Each additional policy with a company can result in a discount of 5% or more. When packaging policies together companies tend to fill in coverage gaps that would normally exist if each policy was bought separately.
- Customer Loyalty: What all insurance companies want is a customer who buys their insurance from them consistently. Due to this, some companies have a customer loyalty program that will reduce your premium by a small amount for every year that you stay with them. This makes staying with one company, even if their rates go up, an attractive option. What you may not know is that some companies will offer similar discounts or better rates for customers who switch from their long-term providers. Each company deals with customer loyalty in a different way, some offer lower rates and some others may offer lowered deductibles.
- Payment Options: Companies are like any other entity; they like to get paid on time and reliably. Most insurance carriers love customers who set up automatic payments (Electronic Funds Transfers, or EFT) or pay the total amount of the policy up front. They love it so much that they will often give you a huge price-break on the premium, often as much as 5% to 10%, when you pay with these options.
- Homeowner Discount: You don’t have to buy a home policy to get a discount on your car insurance. Just by showing that you own a home, you can get a few extra percentage points taken off of your personal auto policy.
- Alarm Discounts: Have a burglar alarm in your house? Perfect! Depending on whether it is a local alarm, connected to a monitoring service, or automatically alerts the police during a potential break-in, you can save a large amount on your home and fire insurance policies for having one installed.
Work with your agent to find the companies that offer these opportunities, and look at their pricings with the discounts to make sure that you are getting the best coverage for the least amount of money. This list is far from complete, so there may be many other discounts available for you through your insurance carrier. Be sure that you are getting all the discounts you can on each of your policies.