Managing Insurance Costs
Insurance Knowledge Base
Take a Smarter Approach to Insurance Costs
You can’t control everything that affects insurance premiums, but you can take steps to manage risk, keep your information accurate, and make more informed decisions about your coverage and costs.
Make Sure Your Coverage Keeps Up
Insurance needs change as life and business change. Review your coverage annually and whenever you make major purchases, renovate property, add drivers or locations, or experience significant changes in business revenue or payroll. Make sure property characteristics, vehicle use, classifications, payroll, sales, and loss information are accurate. Incorrect or outdated information can affect both your coverage and pricing.
Three Ways to Manage Costs
Review Your Deductibles
Ask whether a higher deductible makes sense, but never choose one your household or business couldn’t comfortably afford after a loss.
Explore Available Credits
Ask about protective-device, training, payment, telematics, roof, wildfire-mitigation, or claim-free credits. Availability varies by insurer.
Compare the Whole Package
Bundling may improve total cost, but price shouldn’t be the only consideration. Compare the coverage, deductibles, exclusions, and overall protection you’re receiving.
Prevention Can Be Worth More Than a Discount
Regular maintenance and risk improvements can help reduce the likelihood or severity of a loss. Address small maintenance problems before they become larger ones, while promptly reporting events that could create liability or exceed your deductible.
Keep documentation of improvements, including photos, inspection reports, maintenance records, safety training, driver records, contracts, and other mitigation work.
Good Insurance Decisions Go Beyond Price
- Maintain continuous coverage and pay premiums on time
- Keep policy information accurate and current
- Review coverage after significant life or business changes
- Choose deductibles you can comfortably afford
- Ask about available discounts and risk-improvement credits
- Maintain your property, vehicles, and safety systems
- Avoid frequently changing carriers based solely on price
- Compare coverage forms, exclusions, claim service, and long-term fit
- Meet with your insurance advisor before making major purchases or business changes
IMPORTANT: This material is general educational information and is not intended as legal, tax, safety, or coverage advice. Insurance policies contain conditions, limitations, and exclusions, and coverage is determined by the actual policy and the facts of a loss. Statistics are national unless otherwise stated and do not predict an individual premium. Consult a licensed insurance professional and other qualified advisors for guidance specific to your circumstances.