General Tips To Save Money On Your Insurance Premiums

1. Keep Your Credit Rating Good

In most states, an individual's credit rating is used to determine premiums for auto insurance and homeowners insurance. The theory is, that if people have good management of their financial affairs, the fewer insurance claims they will have. Therefore, the better your credit rating, the lower your premium.

In the state of Oregon, credit history may only be used in combination "with other substantial underwriting factors." Insurance companies in Oregon may also use disputed credit histories to determine eligibility or charge higher premiums, however, if the disputed credit history is settled in the consumer's favor, the insurance company must reach of the premium retroactive to the effective date of the current policy term. This makes it important to check your credit rating yearly and correct any errors. And, if your credit history is incorrect, report it immediately to your insurance agent. You may be able to lower your premiums.

2. Have A Good Driving Record

Insurance companies correlate safe drivers with lower premiums. Obviously, the fewer accidents you have, the less money they will have to pay out to pay for injuries or car repairs. To determine if you are considered a safe driver, insurance companies look not only at your age, but your previous driving records. Also, students to receive who a grade point average of B or better get a favorable premiums. Insurance companies correlate good grades with being more responsible.

3. Higher Deductibles Mean Lower Premiums

A deductible is what you pay before your insurance policy begins making payments. On both auto and health insurance, by requesting a higher deductible, you can lower your premium costs substantially. While this means you will have to pay more out of your pocket for car repairs or medical expenses if there is an accident, however, in the long run, you will save a lot of money. This is a good reason have some cash stashed away to pay for these higher deductibles should you need it.

4. Ask For Discounts

Most of the time, insurance agents will not tell you about discounts that you will be eligible for unless you ask for them. Sometimes, simply by asking about possible discounts, you can save a lot of money on your insurance premiums. For example, you may be eligible for a low mileage discount if you drive a lower than average number of miles per year in your car. So, ask your insurance company the question "What types of discounts do you have?"

5. Shop Around

Probably the most important to keep in mind is to shop around. You may find that you get a better deal shopping for insurance with a specialty insurance company, such as one who caters to a specific lifestyle or disease. There are health insurance companies, for example, who cater to tobacco users. Or, if you drive a motorcycle, you may get a better deal with an insurance company specializes in motorcycle insurance. Your best bet may be to go to an insurance broker. An insurance broker differs from an agent in that they specialize in the insurance policies for many different insurance companies, while an agent only sells insurance from one insurance company.