Home and auto insurance rates are getting higher and higher, get these practical tips to help take some pressure off your wallet!

The cost of living is getting higher and higher. In addition to rising prices for groceries, housing and cars, people are also facing more expensive insurance bills. According to S&P Global data, the average rate for home insurance has risen 11.3% as of December 2023, and some large auto insurance companies have increased their rates by double digits last year.

Not having insurance is a bad idea, and in most states, it is illegal to drive without auto insurance. If you are paying off a mortgage, your lender will require you to have homeowners insurance.

So how can we reduce these sudden costs?

“I just bought a house and was happy to learn that I could get a cheaper rate if I bundled my new home insurance with my car insurance.”

This is a common way to save money. According to Progressive, consumers can save about 5% by bundling their home, apartment or renters insurance with their auto insurance. In addition to saving money, bundling can also save you a lot of trouble. If something goes wrong with your car or new home, you only need to call one number.

At the same time, it doesn’t mean that people who don’t own a house can’t choose to “bundle insurance” to save money. Some car insurance companies also offer bundling options for life insurance and other non-family insurance, which is worth considering. Other ways to save money include 👇

Shop around: Different insurance companies have different rates, and it is good to get a few quotes before signing a contract;

Ask about discounts: Many insurance companies offer a range of discounts, such as for good students or veterans, and sometimes you can get a discount if you pay your annual premium in full;

Telematics Car Insurance: Drivers who are willing to be monitored by their insurance company can consider using Telematics Car Insurance, which lets drivers download an app or plug a device into their car to get lower rates.

Improve your credit score: A low credit score can lead to higher insurance costs. The Motley Fool Ascent research team found that drivers with bad credit pay more than twice as much for auto insurance as drivers with good credit. Consider paying all bills on time, reporting errors on your credit report, and paying off existing debts.