GuidesCost Management

Reducing Insurance Costs: Investor Strategies & Discounts

By

Investor Friendly Insurance

Published

3/22/2024

Read Time

11 min

Master legitimate strategies to reduce insurance costs including deductible selection, bundling, loss prevention, and claims management.

Key Takeaways

  • Strategic deductible selection reduces costs without sacrificing protection
  • Loss prevention investments generate premium savings
  • Bundling multiple policies and properties reduces costs significantly
  • Claims history management is critical for controlling costs

Deductible Strategy

Increasing deductibles from $500 to $2,500 reduces premiums 10-15%. Only increase deductibles if you can afford the out-of-pocket cost when claims occur.

Loss Prevention Investments

Fire alarms, security systems, and sprinkler systems reduce premiums 10-20%. These investments often pay for themselves through premium savings.

Bundling and Multi-Policy Discounts

Bundling property insurance with auto and umbrella coverage provides 10-25% discounts. Insuring multiple properties with one company generates additional savings.

Claims History Management

Claims follow you for 3-5 years and increase premiums. Avoid filing small claims. Consider self-insuring minor losses to avoid rate increases.

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