Getting or renewing home and car insurance
What you need to know:
• It's a highly competitive market. There are 130 companies that offer car policies and 120 that write home policies.
• The price is flexible.
What you need to do:
• Shop around. Get quotes from several companies (the major insurance providers and many brokers offer free online quotes).
• Get a broker. He deals with more than one company and knows the policies cold. He can tell you what's missing from one you are considering or if there are any special exclusions that might make it less than ideal for you.
• Raise your deductible. It's foolish to make a claim against car or home insurance for anything under $1,000; a claim will increase your premiums and make you less desirable to another insurer should you decide to switch providers down the road.
• Offer to combine your home and car policies (and cottage if you have one) with the same company -- you're likely to get a better deal.
• If you're looking to insure an older home, make repairs, such as fix rickety railings and steps, replace knob-and-tube wiring, and install alarms.
• If you have an old car, drop your collision coverage.
What you need to say:
• "What can I do to lower the price of this policy?" Paying annually rather than monthly, for example, might shave off as much as one month's premiums.
• "Why is this the price?" Your address, for example, affects the price of your home policy. Knowing why you're being quoted the amount you are helps you research the best deal. Are there factors you can change (repairs and security systems) or are the factors things that aren't so simple (your claim history, for example)?
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