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Home and automobile insurance is one of the most important elements of a sound financial plan.  While most people consider their homes and cars to be their single biggest assets, these posessions can also become huge liabilites from which you must protect yourself. 

The good news is competition among insurance companies has increased over the last few years resulting in lower prices and improved customer service.  Since insurance quotes can vary between companies by 15% or more for the same level of coverage, you need to make sure you are getting the best deal!  Here are a few tips to ensure you get the best price on insurance for your home and cars.

Watch Your Credit Score:

Believe it or not, many insurance companies have begun factoring in your credit score when determining your insurance rates for both your home and automobile insurance.  Their research has revealed that people with lower credit scores file a higher percentage of claims than people with higher credit scores.  If your credit score is less than perfect, you may be interested in my tips on improving your credit score.

Where You Live Affects Your Insurance Premiums:

I don’t suggest you move just to save on your insurance premiums, but if you are in the process of relocating to a new area it may be worth getting quotes on homes and vehicles in several different counties, cities, or even neighborhoods.

Shop Around:

As I mentioned earlier, the competition amongst the major insurance companies has created a very favorable market place for consumers shopping for insurance.  We’re a seeing a new generation of insurance shoppers moving away from the traditional “home town insurance agent” mentality, and taking their search for insurance coverage online.  The more effort you put into research your insurance options, the more money you will save!

Consider Increasing Your Insurance Deductibles:

Increasing your insurance deductibles is one of the most effective ways to save money on your home and automobile insurance.  In my particular situation, I calculated that if I could go 1.7 years without an “at fault” accident in my car I would begin saving money with a $1000 deductible (the maximum allowed by my company) over a $250.