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Top 4 Ways to Save on Insurance in the New Year
Blog / Business / Jan 11, 2025 / Posted by Melanie Musson / 1

Top 4 Ways to Save on Insurance in the New Year

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Saving money is something to strive for all year round, but sometimes, it’s good to put extra effort into a reset with the new year.

If you’ve taken the step to insure your business, you’re demonstrating your commitment to financial security even if catastrophe strikes. But you shouldn’t be spending too much money or paying for coverage you don’t need.

Read on to discover four ways you can save on your commercial insurance policy.

Review Your Insurance Coverage

Things change from year to year. A new year should bring about new ideas about ways you can grow and where you can save.

You may be paying for coverage you don’t need anymore. If you used to carry inventory but now you hire that out to a warehouse, you shouldn’t be paying to insure inventory in your business location.

If you had three cars insured and now only have two cars you use for business, you should update the vehicles you’re covering.

Perhaps you’re paying for coverage that is too high of a limit. You should be protecting your assets, but you don’t need $500M in coverage for a business worth $2M.

Meet with your insurance agent to go over your coverage and see if there’s a way you can save money by updating your policy.

Adjust Your Deductible to Save

Insurance premiums are calculated using data related to your risk of filing a claim. When you agree to pay more when you file a claim, you assume more of your risk, and your insurer charges lower premiums to reflect its reduced risk.

This principle applies to many lines of insurance, including finding a good deductible for auto insurance, home coverage, and commercial policies.

It’s essential to consider your business’s ability to pay a deductible before you set it too high. If you file a claim, you must have enough money to pay your deductible. You may want to keep the amount you need for a deductible in a savings account so you don’t get into a situation where you have difficulty coming up with the money.

Compare Insurance Quotes

Because business insurance coverage can be complicated, depending on the coverage lines you need to carry, you may be tempted to stick with your current insurer and avoid comparing quotes to find a cheaper alternative. However, switching providers could save 10% or more, especially if you haven’t compared quotes for a while.

One company may be a better fit for the type of business you run than another, so it’s important to collect many quotes so you can discover which provider is the best fit.

Look for Insurance Discounts

Insurance companies offer discounts. You need to make sure you’re getting credit for all the discounts you’re eligible for.

Some discounts are based on your payments. For example, if you set up automatic payments, opt into paperless billing, or pay every six months, you’ll usually get a discount.

Sometimes, you can get a discount or a lower premium when you make upgrades to your property. For example, installing a sprinkler system could help you pay lower property insurance premiums.

Participating in employee safety training can also help your business pay lower insurance premiums. Talking to your agent can help you discover more ways you can save.

As the new year begins, take some time to review your policy, adjust your deductible, shop around, and find discounts so you can improve your financial well-being throughout the year.

About Author

Melanie Musson, a published insurance expert, is the fourth generation in her family to work in the insurance industry. Over the past two decades, she has gained in-depth knowledge of state-specific insurance laws and how insurance fits into every person’s life, from budgets to coverage levels. She specializes in autonomous technology, real estate, home security, consumer analyses, investing, digital security, and business finance.

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