Do you want to save money on renters insurance policy? Here are the top 10 ways to help you get a discount on your renters’ policy.
Renters insurance is generally cheap. You can get it for a price as low as $200 a year. But still, Insurance Information Institute’s survey revealed that 60% of renters haven’t purchased renters insurance that could protect them from fire, lawsuits from someone who gets injured on your property, and theft of your personal possessions.
If you are worried about the cost, then you can apply some tricks to get a even more cheaper policy.
You can take advantage of the discounts available in homeowners’ insurance because renter’s insurance is almost same as homeowners’ insurance. The only difference is that you don’t pay to insure the structure where you live.
Here are 10 smart ways you can use to save money on renters insurance.
1. Shop Around
Shopping around is the best way to save money not only on renters insurance but on any policy you intend to buy.
The cost of the policy will differ from one insurer to another as every insurance company calculates the cost using a different formula.
This implies that you can save money on renters insurance by comparing the rates and choosing the lowest available rate.
2. Bundle your policies
Bundling policies means buying multiple policies from the same insurer. This makes you eligible to get discounts.
So if you want to save money on your renters insurance, then you should consider buying renter insurance and car insurance from the same insurer.
For example, insurance companies like Geico and Allstate offer discounts if you bundle your policies.
You can check other reputed names such as Liberty Mutual, Farmers, etc if they offer discounts on bundling policies or not.
3. Increase your deductible
A deductible is an amount that you need to pay before your insurance policy comes into effect. It’s useful if you want to lower your premium.
Simply put, the more the deductible, the less the premium.
So in order to save money on renters insurance, you need to increase your deductible. According to insure.com, if you increase your deductible from $500 to $2,500, you can save $35 annually.
4. Install security equipment
Insurance companies provide discounts if you install security equipment for the safety of your apartment. For example, installing fire extinguishers or smoke detectors can fetch you a discount because it makes your home more secure against fire.
Installing anti-theft devices like burglar alarms and deadbolt door locks are also a good option to attract a discount on your renters’ insurance policy.
However, you should avoid getting certain breeds of dogs for security purposes as they can make it hard to let you get an affordable renters’ insurance policy.
Insurance companies generally don’t like certain dog breeds because they can be violent and bit someone.
If you are an owner of Rottweiler, pit bull, or Doberman pinschers, it will be hard for you to get a renters’ policy especially if it has a history of biting people.
5. Live in a low crime area
Low crime area means very little damage to property due to theft or vandalism. insurers prefer as much safety as possible for your property. So, if you live in such an area, this could help you to save money on renters insurance policy.
6. Make Automatic Payments
Some insurance companies offer discounts if you set up automatic payments every month. It’s not a common thing to get discounts for automatic payments but you can get discounts for this from some major insurance companies. For example, Allstate gives you a 5% discount for setting up automatic payments.
7. No Smoking
Insurance companies take smoking seriously because it’s one of the prominent reasons that cause fire in residential areas. If no one smokes in the apartment, then insurance companies can give you discounts on your premiums.
8. Be With The Same Insurer
If you stay with the same insurance company for several years, you can receive special concessions from them. Some insurers may provide you 5% discount if you remain their customer for 3 to 5 years. You can even get a 10% discount from some insurers if you be with them for 6 or more years.
9. Discount For Seniors
You can also save money on renters insurance if you are a senior citizen and retiree. If you are above 55 years of age and retired, then you may get a discount. Insurance companies like Allstate give a 25% discount to retired people and senior citizens.
10. Excellent Credit Score
Your good credit score can help you save money on renters insurance. Insurance companies review your credit score to check how good you are at paying your bills and this also helps them to predict how often you can file a claim. So if you have a good credit score, insurers can give you a discount on your policy.