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Along with increased prices at the grocery store and gasoline pump, many people have also had their homeowners insurance premiums raised. Even without an increase, any reduction in bills would help the family budget cope with higher prices in other areas. However, I do not believe that everybody is taking advantage of homeowners insurance discounts that they may qualify for, or could qualify for with some simple steps.

Keep in mind that many discounts are cumulative, so three 15% discounts, can add up to a 45% lower bill. If your premium is $150 a month, that would slash your bill to $82.50. Multiply this out over a year, and the savings add up to over $800. I am sure that most of us could use that extra money to increase our savings, reduce credit card debt, or maybe even to have a little fun!

The most common way to reduce your bill is by using the same company to cover your auto and your home. This usually works with homeowners, condo, and rental policies too. A common discount is 15%, but I have seen higher ones. Many well known discount auto insurers do not offer home insurance, and may not actually offer the best rate because of this. Some of these discounters have become partners with home insurers in order to offer the discount.

You could cut another 15% by installing protective devices. Some of these are really inexpensive, like deadbolts and fire extinguishers, and some are more elaborate, like central burglar alarms and fire alarms. In any case, these devices protect your property, and could possibly save your life. If doing the right thing to keep your home and family safe while saving money appeals to you, you should look into the protective device discount.

Some companies also offer discounts for other things that you may be able to take advantage of. For instance, people can get a break for being over 55, or for belonging to certain professional organizations. Discounts for public servants like teachers and firemen are common.

Some other things that insurers offer savings for are not so easy to do. Great credit or a lack of claims can help reduce rates, and those are goals to work towards, but not things you can change right away. New homes, or homes that have been renovated, will be considered safer.

If you have explored every way to cut your rates and still cannot afford the premium, consider raising your deductible. The difference in price between a $500 deductible and a $1500 deductible is considerable. But keep in mind, that if you do have to make a claim, you will have to pay that deductible amount before your insurance kicks in. If you do raise your deductible, try to use some of the cost savings to increase your savings or pay down credit card debt so you will have some cash when you need it.

Of course, you should always shop around. Companies do use different criteria for determining rates, and you may find a better break down the street!