If you want to protect yourself from different risks and exposures, you will need to select insurance carefully. Protecting yourself does not have to be overly expensive, but if you feel like you are paying too much for your insurance, here are a few reasons why.

Low Deductibles

The amount of your deductibles influences your insurance premiums. Higher deductibles result in lower premiums, and vice versa. Consider increasing your deductibles, if you can afford it. Higher deductibles will reduce your insurance rates, although you should make sure that you can still comfortably pay out of pocket in the event of a claim.

Bad Neighborhood

If you live in a large city or a high crime neighborhood, your insurance premiums will be higher than in rural areas, because insurance companies will consider you a high-risk client. For example, your Auto Insurance rates will be calculated based on where the vehicle is parked, so parking your vehicle at night in a locked garage might be helpful.  

Poor Credit History

Most insurance companies check your credit history when calculating your insurance rates. Individuals with bad credit record receive higher rates than those with higher credit scores and better credit history. Insurers believe that people with poor credit history are more likely to file a claim since they are not responsible in managing their finances.  

Missing Out on Discounts

You may be paying too much for insurance if you do not check for discounts and do not bundle several policies from the same insurance carrier. You can ask insurance carriers directly what discounts they offer and how to qualify for them. Moreover, bundling is another great option to receive a discount on your insurance policy.