Your insurance premium is the amount of money you pay for your insurance policy. You may pay your premium in full or in monthly, quarterly, or annual installments. Regardless of the type of insurance policy you have, follow these helpful tips to save on your insurance premiums.

1) Research and compare prices. One of best ways to save money on your insurance premium is to shop around. Don’t settle for the first insurance company you call! Most insurance companies have their own formulas for calculating your level of risk and their cost to insure you. As a result, your premium can easily vary by hundreds of dollars between different insurance companies. We recommend asking friends and family for recommendations and getting price quotes from at least three different insurance companies. You can even research rates through your state insurance department.

2) Purchase multiple policies from the same company. Many insurance companies will give you a discount on your premiums if you buy multiple policies from them. Try to look for larger insurers that offer different types of insurance, such as homeowner’s insurance, car insurance, and life insurance.

3) Become a long-term customer. Many insurance companies reward long-term customers with special discounts. You can save up to 5 percent on your premium if you stay with the same insurance company for 3 – 5 years, and up to 10 percent if you’re a long-term customer of 6 or more years.

4) Increase your deductible. While the premium is what you pay for your insurance policy, your deductible is the amount you pay out-of-pocket before your insurance coverage goes into effect after you file a claim. A higher deductible lowers the amount your insurance company pays in the event of a loss and can often result in lower premiums. Depending on how much you raise your deductible, you may save as much as 25 percent on your annual premium.

5) Review your policy annually. Regardless of the type of insurance you have, it’s important to regularly update your policy to make sure you aren’t paying for insurance you no longer need.