A
wide variety of renters insurance discounts are available:
These
range from safety and security devices you use to lessen your
risk of injury or loss due to theft, to how close you live
to a fire department. The list, compiled by the Insurance
Information Institute (III), shows ways you can save on renters
insurance, taking advantage of many of the same discounts
available to homeowners. "Renters insurance is almost
identical to homeowners, the only difference is that you're
not paying to insure the structure in which you live,"
says Jeanne Salvatore, director of consumer affairs for the
III. The discounts will vary by state and insurance company.
Be sure to ask for all of the discounts for which you qualify.
Here
are some ways to save on renters insurance:
1. Shop around
Check with several different renters insurance companies to
get rate quotes (an independent insurance agent can provide
rate quotes from a variety of companies). Check with friends
and relatives to see if they are satisfied with their insurance
company.
2. Raise your deductible
The deductible is the amount of money you have to pay toward
a loss before your insurance kicks in. Typically, renters
insurance deductibles start at $250.
Increase your deductible to:
$500 and save up to 12 percent
on your premiums.
$1,000 and save up to 24 percent.
$2,500 and save up to 30 percent.
$5,000 and save up to 37 percent.
Make sure you can afford to pay the higher deductible out-of-pocket
if something should happen.
3. Maintain a good
credit rating
Having a good credit rating is one of the best ways to lower
the cost of any policy. An insurance company screener will
want to know not only how well you pay your bills, but insurance
companies use this tool as a predictor of your likelihood
to file a claim. And having a good credit rating is one way
of helping you to secure the apartment or lease you want,
as your landlord will probably review the same information.
4. Buy your renters
and auto policies from the same company
Many companies will give a multiline discount if you buy both
renters insurance and auto coverage from them.
5. Install safety
and security devices in the apartment
Some companies may look favorably on you if install smoke
detectors, a fire extinguisher, and dead bolt door locks and
window locks in your apartment. Ask the landlord to install
these items if you live in a state in which these items aren't
required. Few companies would ask for anything more than a
statement from you saying these items are included in the
apartment.
6. Stop smoking
Smoking accidents account for more than 23,000 residential
fires every year. Some insurers offer to reduce premiums if
no resident of the apartment smokes.
7. Look for senior
discounts
Insurance companies have found that retired people stay at
home more and spot fires sooner than working people. If you're
at least 55 years old and retired, you might qualify for as
much as a 10 percent discount.
8. Look for group
coverage
Large employers and alumni and business associations often
work out deals with insurance companies which include discounts
for employees and members.
9. Stay with an insurer
If you've kept your coverage with a company for several years,
you may receive special consideration. Several insurers will
reduce their premiums by 5 percent after you stay with them
from three to five years, and some companies will discount
you as much as 10 percent after six years.
10.
Check your policy annually
You want your policy to reflect the value of your belongings.
If you review your policy every year, you will be able to
make the necessary adjustments. If you bought or sold expensive
electronics, a computer or jewelry during the year, you may
need to increase or decrease the amount of coverage for your
possessions.
