In our previous articles, we have discussed why it is important to carry proper insurance coverage. This month, we will discuss ways to save money while you do so. Here are some ideas for ways to reduce your insurance premium:

• Automatic billing. Most carriers will give their clients a discount for signing up for recurring payments, whether that is monthly, quarterly, or annually. Companies give this discount because they can spend a great deal of effort and fees trying to contact customers whose payments are late, and whose policies are in danger of cancellation for non-payment. So companies want to encourage their clients to choose automatic billing, and therefore they offer discounts on policies.

• Telematics. Many carriers are now offering technology which tracks a driver’s specific driving habits – habits like speed, braking, what time of day they travel. Based on performance, this data can lower a driver’s insurance rate or trigger a rebate. Telematics are an easy way to match car insurance rates with an individual’s behavior, and can greatly reduce the client’s rate – sometimes by as much as 25%. Telematics technology has improved in recent years, and can sometimes be incorporated into a smartphone application.

• Bundling policies. Insurance carriers provide discounts – and the best service – to clients who carry all “lines” of insurance with them. Having both auto and property insurance (whether it’s home, condo, or renters) with the same carrier provides a substantial discount to all policies.

• Prior insurance. The length of time that a client has maintained insurance can provide savings on either an auto or property insurance policy, depending on the carrier. With some companies, the longer a customer has had auto insurance, the better their rate will be. Any client getting a new quote for car insurance – or property insurance– should be sure the person preparing the quote understands how many years and months the client has had insurance. In order to affect rates, this must be continuous coverage, without any breaks or lapses.