Having an adequate level of insurance is essential today. An average household can have a variety of plans and premiums relating to possessions, the home, and health. If you are determined to decrease the overall outlay involved, these are a number of strategies you can adopt that should help in lowering the cost by hundreds, or even thousands, of dollars per year.

Some primary factors which will lower the cost of your insurance include as follows:

1. SHOP AROUND - Shopping around for insurance will take some time and effort, but could save you a large amount of money. Ask your friends, check the Yellow Pages or call your state insurance department. Also check consumer guides, insurance agents, companies and online insurance quote services. Talk to a few insurers to get a feeling for the type of service they offer and ask them what they would do to lower your premium costs.

2. COMPARE - When comparing companies, have your current policy handy when calling so you can compare apples with apples. If you do find a better policy, make absolutely certain that your new policy is in effect before dropping your old one.

3. MULTIPLE POLICIES - Use the same insurer for multiple policies. Whenever possible, buy your home and auto policies from the same insurer. Some companies that sell homeowners, auto and liability coverage will take between 5 to 15 percent off your premium if you buy two or more policies from them. But make certain this combined price is lower than buying the separate coverages from different companies.

4. STAY WITH THE SAME INSURER - If you have maintained your coverage with a company for several years, you may receive a special discount for being a long-term policyholder. This is why it is important to compare against your current policy. Some insurers will reduce their premiums by 5 percent if you stay with them for three to five years and by 10 percent if you remain a policyholder for six years or more. Check to ensure that you are receiving the ‘renewal’ discount but make sure to periodically compare this price with that of other policies.

5. GET YOUR DISCOUNTS – Make sure that you get all the discounts you may qualify for. For example, on car insurance, check on discounts for safety and security features such as a car alarm. On household insurance, you may receive a reduction if your home has an alarm system, smoke detector, burglar bars and other security features.

6. RAISE YOUR DEDUCTIBLE - Deductibles are the amount of money you have to pay towards a loss before your insurance company starts to pay a claim, according to the terms of your policy. The higher the deductible, the more money you can save on your premiums. For example, a common deductible amount is $500. This means that if you are involved in an accident and you cause $1,500 worth of damage, then are liable to pay $500 and the insurance company pays $1,000. You could, however, set your deductible to $1,000. This still covers you against heavy losses, but it may decrease your monthly premium by as much as 30 percent.

7. REVIEW ANNUALLY – Review the limits in your policy and the value of your possessions at least once a year.

8. ASK QUESTIONS – If you have questions about insurance for any of your belongings, be sure to ask your agent or company representative when you are shopping around for a policy. For example, if you run a business out of your home, be sure to discuss coverage for that business. Most homeowner’s policies cover business equipment in the home, but only up to $2,500 and they offer no business liability insurance.

9. MAINTAIN A GOOD CREDIT RECORD - Establishing a solid credit history can cut your insurance charges. Insurers are increasingly using credit information to price insurance policies. To protect your credit standing, pay your bills on time, do not obtain more credit than you need and keep your credit balances as low as possible. Check your credit record on a regular basis and have any errors corrected promptly so that your record remains accurate.

When looking to save money on insurance policies, it is vital to invest time to shop around for the best insurance deals. It is also vital to understand that the cost of the premium is not the only factor to be considered– quality of service, quick response to claims and financial soundness are all important factors to consider when purchasing an insurance policy.