The Hanover Insurance Group

Eight ways to make the most of your insurance dollars

Young Woman Dreams

Home and auto insurance rates are on the rise – in every region of the country and across the whole property and casualty insurance industry. Wonder how you might save on insurance?

Should you receive a premium increase, there are several options you can consider to help maximize your insurance dollars and maintain the coverage you need should the unexpected occur.

  1. Consult your independent insurance agent. Your agent can review of your policies and make recommendations on how you might reduce your premium. Review our benefits of working with an independent insurance agent infographic for more information on how an agent can help ensure you have the right combination of coverage, value and price.
  2. Review your deductibles. Increasing the deductible on your auto  deductible from $250 to $1,000 or homeowners deductible from $1,000 to $2,500 could reduce your premium by about $20 or more a month. That’s money back in your pocket. Or, if you do not already have one, you might consider putting it toward an umbrella policy. With a policy  of $1 million of coverage starting at as little as $20 a month, financial experts agree that an umbrella offers the best value for the dollars you spend on insurance. Learn more about how an umbrella policy protects your family and your assets.
  3. Evaluate your coverage and limits. Remember, as your life changes, your insurance needs also evolve, and you may need more or less coverage, or higher or lower limits. For example, the Insurance Information Institute recommends that you “consider dropping collision and/or comprehensive coverages on older cars. If your car is worth less than 10 times the premium, purchasing the coverage may not be cost effective.” Kelley Blue Book, your bank or a local auto dealer can give you a sense of what your vehicle is worth.
  4. Combine your home and auto accounts. Most carriers, including The Hanover, offer total account discounts. So, having your home, auto and other personal policies with one insurance company will help keep your premiums down. This short video provides more details on how consolidating your policies with one insurance company can help you save money – and even provide more robust coverage.
  5. Take advantage of discounts. Have a child who just left for college? You may qualify for a student away from home discount on your auto policy. Does your child do well in school? You could qualify for the good student auto discount. More of a homebody? You might be eligible for a low mileage discount. Have a home security system? That should help reduce your home insurance rates. Live in a gated or over-55 community? That, too, could offer savings on your home insurance rate. Your life circumstances continue to change.  So, when you sit down with your independent insurance agent, ask if there are any new discounts that you qualify for that could help bring down your rates. The Insurance Information Institute offers more ways to save on home and auto rates.
  6. Avoid risks that increase your rates. Having certain pets, installing a swimming pool with a diving board, and putting a trampoline in your backyard are three ways you can quickly increase your home insurance rates or make you ineligible for insurance with certain carriers. Driving a lot of miles can impact your auto premiums. Consult your independent insurance agent on what risks may raise your rates.
  7. Assess the full financial picture. If you have a small fender bender or sustain minor damage to your home, in the long run, it may be more cost efficient to pay for the repairs out of pocket as claims can increase your premiums.
  8. Be safe and loyal. Many insurance companies, including The Hanover, recognize safe driving and customer loyalty with coverage options such as second chance accident forgiveness and deductible dividends. Jumping from insurance carrier to insurance carrier could offer small immediate savings, but you could lose valuable loyalty credits.

Many factors determine what your insurance rates are… and why they may go up. Often, it is not what you are doing, but other drivers and homeowners are doing that has a negative impact on premiums across the board. Review our home and auto trends interactive infographic to learn more about why rates are on the rise.

While saving money is alluring to most, remember that you don’t want to cut your insurance protection so much that should something happen, you do not have the coverage limits you need to get your car back on the road or your home rebuilt. Your independent insurance agents can provide guidance on the pros and cons of adjusting your coverage to reduce your premiums.

Clear Coverage Checkup

Clear Coverage CheckupLooking for more information to help discuss your policy with your agent?

Take a moment to complete our survey, Clear Coverage Checkup. You might learn more about coverage that can help further protect you, and discover potential gaps in coverage that you may not be aware of. After just a few simple questions, you'll receive an easy-to-read report that will help you start the coverage conversation with your agent.

Disclaimer: This article is provided for informational purposes only and does not purport to address every possible legal obligation, hazard, code violation, loss potential or exception to good practice.

LC 2017-577