Tips to save on insurance for car and home

(Saving with 6abc - Amy Buckman)

April 30, 2012 2:19:58 PM PDT
The state says you have to insure your car. The mortgage company says you have to insure your home. The bills come every six monthsand each time, the premiums seem to get higher.

If you just pay those bills, without shopping around, Financial Adviser Rick Rodgers, author of The New Three-Legged Stool, A Tax Efficient Approach to Retirement Planning, says you could be throwing money away.

"For your homeowners, your automobile, there's certainly nothing wrong with shopping it every year when it comes up for renewal," Rodgers says. "It pays to shop around."

Rodgers says when comparison-shopping it's important to look both at rates and the company's track record for customer service, which you can find through J.D. Powers, or the state insurance department.

"We don't want to be paying premiums of any amount, even if they're half of what you had been, to a company that doesn't pay your claim," Rodgers explains.

See if your insurance company offers discounts for:

-Safe Drivers
-Safety or anti-theft equipment on the vehicle
-Insuring multiple cars
-Defensive driving or refresher courses

"If the insurance company is covering your automobile, and your homeowners, and your liability policies, they generally offer a discount," Rodgers says.

And -- for your homeowner's insurance, Rodgers says you might consider raising your deductible to lower your premium.

"This is probably where raising your deductible is a little easier to do," Rodgers explains. "Because it has a significant impact on your premiums and the average homeowner only has a claim every eight to nine years according to statistics."

Rodgers also suggests looking at potential insurance rates when you're shopping for a car. You can find a rundown on the the cost of insuring cars at