Ways to Save on your Renters Insurance

It’s a good idea to consider purchasing renter’s insurance when you rent a house or an apartment. Many people don’t consider, or even realize, that a landlord only has insurance for the building itself. This does not include coverage for all your belongings such as your television, computer, DVD player, clothes, jewelry, furniture and other valuable possessions.

In the event of a fire, or if something is stolen or damaged, all of your belongings are lost if you don’t have renter’s insurance. You can easily realize the value of purchasing rental insurance once you understand what your landlord will and won’t cover. The good news is renter’s insurance is relatively inexpensive; there are many ways to save on your renter’s insurance.

Shopping around is the most important action you can take for saving on renter’s insurance. Start by comparing the quotes of different companies and find out which one is the most suitable for you. Insurers are likely to give you a reduction if you have several insurance policies, such as a car policy, by the same company. Also if you opt for automatic payments, this will reduce your expenses. You can do this by allowing your insurer to directly withdraw your monthly payments from your bank account; this will reduce your bill by dollars each month.

Online shopping can save you money and is often the fastest way to compare rates. There are even insurance comparison websites that give the possibility to compare renter insurance quotes of different companies. If you fill in the necessary information, the site gives you a calculation about of the premium in several companies, and often you’ll see some of the differences are higher than you expect. It is not unusual to save more than 40% on your renter’s insurance by exploring the different rates through comparison shopping.

Raising the deductibles of your renter’s insurance will give you a high savings. A large deductible will prevent you for using your renter’s insurance for small claims, and this approach saves you money in premiums. Most insurance companies add a surcharge from 10 to 75% which is dependent on the quantity of claims during a certain time period. When you raise your deductibles to a higher amount you can save a higher percentage on your premium, but be sure you can afford to pay the higher deductible if something were to happen. Carefully consider the consequences of this decision because if the deductible is into your savings, the premium can lead to a greater loss in the money you get from your insurance company in the event of need.

An insurance company will try to always limit the risk of paying. They are likely to give you some deductions if you pay attention and reduce safety risks. Smoking is the highest risk factor for many hazards and not only for your health. It is also a risk factor for fire in your house or apartment. Most insurance companies will reduce your premiums if there are no smokers in your home.

Installing safety and security devices in the house or apartment you rent can give some discounts on your renter’s insurance premium. Smoke detectors, an alarm system, dead bolt locks on every door and window, a sprinkler system and a fire extinguisher in the house or apartment are good ways you can get reductions. The reason is very simple, a safer house or apartment decreases the risk of fire and reduces the risk that insurance companies need to pay in the event of a claim needing to be filed.

Your credit rating is always important if you want a lower cost of every policy you possess. It is not different with the policy of a renter’s insurance. Your company wants to be sure you can pay your bills. If you have a good credit rating you don’t have anything to fear, but if your credit rating is low, it may not be easy to find an insurance company for an affordable renter’s insurance. Maintaining a good credit rating is an important factor if you want to limit the cost of your premium.

Some insurance companies offer also discounts to people reaching retirement age. Sometimes you can find discounts of 10% for this age group. These discounts are called “senior rates”. Regularly review of your policy can save you much money because this discount is only applicable if you are at least 55 years old. Age differences for senior rates are possible between different companies.

An annual review of your policy is always a good idea. You can make adaptations to your policy for enjoying some additional benefits or increase the amount of coverage. A higher value of your belongings means you need to increase the amount of coverage; otherwise the risk will exist that your insurance company won’t pay enough for the damage you suffer. Some companies will also give you discounts when you stay with them for several years.

Finding out how you can save on your renter’s insurance is a lot of research but you can save a lot of money if you take the time to do this. Choose the one with the cheapest premium, but still providing you with the coverage you want. Additionally, you’ll want to pay attention to the good reputation of the insurance company. By choosing a reputable company, you can save yourself a lot of problems and keep more money in your pocket.