One of the best ways to reduce your monthly expenses is through insurance quotes. Getting an insurance quote each year for your homeowner's insurance might help you save money; however, there are times when getting a quote might not be a good idea. Before you call your insurance company to ask for a quote, you should realize the following things.
When You Should Do This
If you have been with the same insurance company for several years and feel like you are paying too much for your insurance, you might be able to save money by requesting a new quote through your current company or through other insurance companies. Before you do this, you may want to think about the following two things:
- Has your credit changed since your last quote?
- Have you had any insurance claims since your last quote?
Your credit score can play a role in the cost of your homeowner's policy. If you had bad credit but have been working on it over the last year or two, you may now have a much higher credit score. In this case, you may qualify for a lower rate simply from the positive change in your credit. If your credit is better and if you have not filed a claim, you are in a perfect position to qualify for lower rates on your homeowner's insurance.
You should also realize that home renovations also play a role in rates. Making improvements to your house could help you qualify for lower rates.
When You Should Not Do This
If, on the other hand, your credit has significantly worsened over the last year or two, requesting a quote might not help you get a better rate. In addition, if you have filed a claim recently, this too can harm your chances of saving money on home insurance.
Most insurance companies do not automatically check each policyholder's credit or other changes each year. Because of this, you might be getting the best rate possible right now if you have had negative things in your life in the last year. It's also important to know that when positive changes occur in your life, it might positively affect your ability to save money on insurance.
If you have good credit and have not filed a claim, you may want to call an insurance company to ask for a quote. This is a good habit to get into each year, and it can help you save money.
For homeowner's insurance, contact a company such as Robbins Insurance & Financial Services Inc.