You'd never pay sticker price for a car without negotiating, so why accept your insurance premium at face value? Between bundling discounts, deductible strategies, and safety upgrades, most homeowners can cut 20–40% off their bill without giving up an ounce of coverage. Here's how.
Amanda Owens
Farhan Husain
Bundle Your Policies
The Impact
Most insurance companies offer significant discounts when you purchase multiple policies from them. Bundling home and auto insurance is the most common combination, but it’s not the only option.
Common Bundling Options
- Home and auto insurance (typically 5-25% discount)
- Home and life insurance
- Home and umbrella liability policy
- Multiple properties on the same account
Additional Benefits
- Simplified billing and account management
- Single point of contact for claims and questions
- Potential for additional loyalty discounts over time
- Easier policy coordination (avoiding gaps in coverage)
Why It Works
Insurance companies value customer retention and are willing to offer substantial discounts to keep multiple lines of business. Acquiring new customers is expensive, so they incentivize existing customers to consolidate.
Potential Savings: 5-25% on combined premiums
Increase Your Deductible
The Impact
Your deductible is the amount you pay out of pocket before insurance kicks in. Choosing a higher deductible lowers your premium — often significantly.
Deductible Strategy
- Increasing from $500 to $1,000 can reduce your premium by 15-25%
- Increasing from $1,000 to $2,500 can save another 10-15%
- Some homeowners opt for $5,000 or even $10,000 deductibles for maximum savings
Important Considerations
- Make sure you can comfortably afford your deductible if you need to file a claim
- Keep your deductible amount in an accessible savings account
- A higher deductible also means you’ll file fewer small claims — which can help keep your rates low long-term
- Some states have special wind/hail deductibles that are calculated as a percentage of your dwelling coverage (typically 1-5%)
Potential Savings: 10-25% by raising your deductible
Improve Your Home’s Safety and Security
The Impact
Insurance companies reward homeowners who take steps to reduce the likelihood and severity of claims. Home improvements that mitigate risk can qualify you for meaningful discounts.
Security Systems and Monitoring
- Professionally monitored alarm systems — 5-20% discount with most insurers
- Smoke and carbon monoxide detectors — Often required, but extra or smart detectors may earn additional credit
- Security cameras — Some insurers offer small discounts for visible deterrents
- Smart home devices — Water leak sensors, smart locks, and connected smoke detectors are increasingly recognized by insurers
Protective Devices and Upgrades
- Deadbolt locks — Simple upgrade that many insurers reward
- Fire extinguishers — Having them on each floor can qualify for discounts
- Sprinkler systems — Can earn discounts of 5-10% or more
- Impact-resistant roofing — In storm-prone areas, a fortified roof can reduce premiums by 10-35%
- Storm shutters or impact-resistant windows — Especially valuable in hurricane and hail-prone regions
Disaster Mitigation
- Roof upgrades — A new roof or one with impact-resistant shingles can dramatically lower rates
- Foundation reinforcement — Seismic retrofitting in earthquake-prone areas
- Brush clearance — Maintaining defensible space around your home in wildfire-prone zones
- Sump pump with battery backup — Reduces water damage risk and may lower premiums
Potential Savings: 5-35% depending on improvements
Maintain a Claims-Free Record
The Impact
Filing frequent claims — even small ones — signals higher risk to insurers and can significantly increase your premiums.
Smart Claims Strategy
- Don’t file claims for minor damage — If the repair cost is close to or below your deductible, pay out of pocket
- Reserve claims for significant losses — Insurance is designed for major, unexpected events
- Consider the long-term cost — A $2,000 claim today could cost you more than $2,000 in increased premiums over the next 3-5 years
- Track your claims-free years — Many insurers offer escalating discounts for consecutive claims-free years
Claims-Free Discounts
- 3 years without a claim: 5-10% discount with many carriers
- 5+ years without a claim: 10-20% discount
- Some companies offer “claims forgiveness” that prevents your first claim from raising rates
Potential Savings: 5-20% for claims-free history
Shop Around and Compare Quotes Regularly
The Impact
Insurance rates vary dramatically between companies — even for identical coverage on the same home. Shopping around is consistently one of the most effective ways to save.
When to Shop
- At every renewal — Don’t assume loyalty is rewarded; many companies raise rates annually
- After major life changes — Marriage, retirement, paying off your mortgage, or major home improvements
- After a rate increase — If your premium jumps, get competing quotes before accepting the new rate
- Every 2-3 years at minimum — Even if you’re satisfied, market conditions change
How to Compare Effectively
- Get quotes from at least 3-5 different companies
- Compare identical coverage levels, deductibles, and endorsements
- Don’t just compare premium — look at claims satisfaction ratings, financial strength, and coverage details
- Consider independent insurance agents who can compare multiple carriers for you
- Use free comparison tools like InsuranceWay to streamline the process
Pro Tip
When you find a lower quote, call your current insurer and ask if they’ll match it. Many companies have retention departments with authority to offer discounts to keep existing customers.
Potential Savings: 10-40% by switching to a more competitive carrier
Maximize Available Discounts
The Impact
Insurance companies offer numerous discounts that many homeowners never ask about. Being proactive can stack multiple savings.
Common Discounts to Request
Property-Related
- New home discount (homes less than 10 years old)
- Renovated home discount (updated electrical, plumbing, or roof)
- Gated community discount
- Fire-resistant construction materials
- Proximity to a fire station or fire hydrant
Policy-Related
- Autopay and paperless billing discounts
- Paid-in-full discount (paying annually vs. monthly)
- Early renewal discount
- Multi-policy discount (beyond just auto + home)
Personal
- Non-smoker discount
- Retiree or work-from-home discount (someone is home more, reducing theft risk)
- Loyalty discount for long-term customers
- Professional or alumni association memberships
- Senior citizen discounts (age 55+)
- Military or veteran discounts
Ask Annually
New discounts are added regularly, and your eligibility can change over time. Make it a habit to ask your insurer to review all available discounts at every renewal.
Potential Savings: 5-20% through multiple stacked discounts
Review and Right-Size Your Coverage
The Impact
Many homeowners are paying for more coverage than they need — or carrying coverage that doesn’t match their actual situation.
Coverage Optimization
- Don’t insure the land — Your dwelling coverage should reflect the cost to rebuild the structure, not the total property value (land doesn’t burn down)
- Review personal property limits — If your kids have moved out or you’ve downsized, you may need less contents coverage
- Evaluate endorsements — Do you still need that scheduled jewelry rider if you no longer own the pieces?
- Check for duplicate coverage — Some protections overlap with other policies you carry
What NOT to Cut
- Liability coverage — Keep this high ($300,000-$500,000 minimum); the premium difference is small but the protection is substantial
- Replacement cost coverage — Actual cash value policies save on premiums but pay out far less at claim time
- Additional living expenses — If your home becomes uninhabitable, this coverage pays for your temporary housing
Potential Savings: 5-15% through coverage optimization
Putting It All Together
The most effective approach combines multiple strategies simultaneously:
- Bundle your home and auto policies for an immediate discount
- Raise your deductible to a level you can comfortably afford
- Invest in safety improvements that reduce risk and earn discounts
- Maintain a clean claims record and only file for significant losses
- Shop around at every renewal to ensure you’re getting competitive rates
- Ask about every discount available to you
- Right-size your coverage to match your actual needs
Important Reminders
Don’t sacrifice coverage for savings. The cheapest policy isn’t the best value if it leaves you underinsured when you need it most. Focus on finding the right balance between cost and protection.
Review annually. Your insurance needs, home value, and available discounts change over time. An annual review ensures you’re always optimally covered and priced.
Work with a professional. An independent insurance agent can help you navigate these strategies and find savings you might miss on your own.
Get some quick free quotes here.
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