As living costs continue to rise in California, consumers face difficult choices about budgeting for essential expenses, including insurance. Home and auto insurance policies are necessary to protect your most valuable assets, but balancing the costs of these policies with everyday financial responsibilities can feel overwhelming. At Fusco Orsini & Associates, we understand that saving money is essential—but cutting the wrong coverage can expose you to unnecessary risks. We advocate for clever ways to reduce insurance costs without sacrificing critical protection.
In this blog, we’ll cover five practical strategies to help you save on home and auto insurance while keeping the coverage that matters most.
1. Consider Increasing Your Deductibles
Raising your deductible is one of the simplest and most effective ways to lower your home and auto insurance premiums. The deductible is the amount you pay out of pocket before your insurance kicks in when you file a claim. While increasing your deductible will mean paying more in the event of an accident or damage, it also leads to lower premiums over time.
For example, the difference between a $500 deductible and a $1,000 or $2,500 deductible on a homeowners policy can result in significant annual savings. Raising the deductible for comprehensive or collision coverage from $500 to $1,000 or even $2,000 on an auto insurance policy can substantially bring down monthly premiums.
Important Considerations:
- Before you opt for a higher deductible, please make sure you can safely cover that amount in case of a claim.
- Review your history of filing claims—a higher deductible might make financial sense if you’re a low-claim individual.
*Pro Tip: Request quotes for varying deductible levels. Set your comprehensive (covers ‘Acts of God’) deductible at $100 and your collision deducible at $1,000 (you’re a great driver, right?). See what happens!
2. Bundle Your Policies for Multi-Policy Discounts
Many insurance carriers offer multi-policy or bundling discounts, which can lead to significant savings. Bundling means purchasing multiple policies—such as auto and home insurance—from the same provider. In some cases, discounts of up to 25% or more are available, making it a simple and effective way to save.
For example, you can unlock discounts by purchasing your homeowners and auto insurance from the same company. Not only is bundling convenient—since you’re dealing with one provider for multiple coverages—but it also rewards customer loyalty with lower costs.
Key Benefits of Bundling:
- Streamlines your insurance management with one point of contact.
- This can lead to substantial discounts on both auto and home policies.
- Some providers offer additional loyalty discounts the longer you stay with them.
*Pro Tip: In a challenging insurance market, carriers may not be as willing to ‘bundle’ coverage. So, if you have a carrier providing a bundle, consider staying with them for ease of use and better protection.
3. Look for Special Discounts
Insurance companies offer various discounts, many of which you may already qualify for without realizing it. These can range from discounts for being a safe driver to memberships with certain organizations. For example, at Fusco Orsini & Associates, we recommend clients take advantage of savings through:
- Good Driver Discounts: In California, drivers who have maintained a clean driving record for at least three years are eligible for the Good Driver Discount, which can significantly reduce auto insurance premiums.
- Costco Membership Discounts: Certain insurers offer discounted rates to Costco members, which can lead to savings on auto and home insurance.
- Home Security Discounts: Installing security features such as smoke detectors, burglar alarms, and surveillance systems can reduce your homeowner’s insurance costs. The added safety benefits also bring peace of mind.
By exploring and leveraging these discounts, you can shave off a considerable portion of your premiums without adjusting your coverage.
*Pro Tip: If you have performed updates on your home systems, such as roofing, HVAC, plumbing, and electrical, let your agent know! These updates could help with premiums.
*Pro Tip: Consider wildfire mitigation for your home in areas prone to these disasters. More and more companies are coming to market with promising techniques to protect your home from these horrific wildfires. Click here to learn more!
4. Optimize Auto Insurance for Young Drivers
One of the most expensive additions to an auto insurance policy is a young driver, especially in California, where premiums for youthful operators are notoriously high due to inexperience and a higher perceived risk of accidents. However, there are ways to manage these costs:
- Choose Older Vehicles for Young Drivers: Instead of insuring a new or expensive car for a teenager, consider an older, reliable vehicle that doesn’t require comprehensive or collision coverage. This can significantly reduce the cost of adding a young driver to your policy.
- Student Discounts: Many insurance companies offer discounts for students who maintain a high GPA, often called “Good Student Discounts.” If your teen meets these criteria, take advantage of this.
- Driver Education Courses: Enrolling your child in a recognized driver’s education course may qualify them for a discount. These programs not only teach safer driving but may help lower your premiums.
Also, remember that a young driver in California won’t qualify for the Good Driver Discount until they have been licensed for at least three years and have maintained a clean driving record. Until then, these savings strategies can help reduce the burden of insuring a youthful driver.
*Pro Tip: As a parent, I know we love to make our kids happy. That often leads to a brand-new Ford Mustang GT in the driveway. This purchase WILL NOT help your insurance premiums! Instead, look for a car that a teen would like but is older and doesn’t require physical damage coverage.
5. Review Your Coverage Annually and Avoid Cutting Critical Coverage
As life circumstances change, so do your insurance needs. It’s important to review your home and auto policies annually to ensure that your coverage aligns with your current situation and that you’re not paying for coverage you no longer need. However, avoiding cutting coverage that protects you from significant financial loss is equally important. For example:
- Homeowners Policy Coverage A: At Fusco Orsini & Associates, we never recommend reducing Coverage A, which refers to the dwelling coverage on your homeowners policy. This is the part of your policy that protects the structure of your home. Reducing this coverage can leave you exposed if you need to rebuild or repair after damage.
- Liability Coverage on Auto Policies: Similarly, lowering your liability limits on your auto policy may seem like an easy way to save money, but it can backfire in a severe accident. If you’re found at fault in an accident and your liability coverage is too low to cover the damages, you could be held personally responsible for the remaining costs. Maintaining adequate liability limits is critical to protecting your finances.
Instead of cutting these essential coverages, focus on savings through the abovementioned strategies: higher deductibles, discounts, bundling, and optimizing coverage for young drivers. You can also work with an independent insurance agency like ours to shop for the best rates across different carriers without sacrificing coverage.
*Pro Tip: Consider adding an umbrella policy, especially if you have assets to protect. I understand you are trying to find ways to SAVE, and I suggest you spend more money. However, personal umbrella coverage is generally inexpensive and can add much-needed protection. Umbrella insurance is a great value!
Conclusion
Saving on home and auto insurance doesn’t have to mean compromising on protection. By taking a proactive approach—such as increasing deductibles, bundling policies, exploring discounts, and optimizing your coverage for young drivers—you can find meaningful savings without taking unnecessary risks. At Fusco Orsini & Associates, we protect what matters most while helping our clients stay within their budgets.
We encourage you to regularly review your insurance policies and speak with an advisor who can help identify new savings opportunities. Responsible financial decisions today can help you avoid costly mistakes in the future.
We’d like to help you strike the perfect balance between affordability and peace of mind.
