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Increase insurance deductibles
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When you get an initial quote for homeowners, renters or car insurance, you might have a good understanding of how your deductible affects your monthly premium. But often, people simply renew without taking the time to re-evaluate, says Jennifer Nelson, an insurance agent in Iselin, N.J.

"If you don't think about your deductible, there's a good chance you're overpaying because you end up buying more coverage than you need," Nelson says.

While rates vary based on a number of factors, the premium always goes down when you get a higher deductible. However, if your deductible is within the limits of your personal emergency fund, it's a good idea to consider raising it.

But don't just raise your deductible to the maximum. Instead, Nelson advises working with an insurance professional to make sure your deductible fits into your overall finances.

To benefit from cutting the premium, Nelson suggests putting the difference between your old and new premiums toward your emergency savings. That way, if you need to cover the higher deductible, you're prepared. If you never make a claim, place the money that would have gone to higher premiums into a savings account.


 

 

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