The rates of Home insurance in Atlanta and across Georgia are on the rise, with homeowners paying an average of $1,832 per year according to 2021 data. That’s an increase of over 45% in just the last decade. With the cost of home insurance premiums continuing to climb, it’s more important than ever to find ways to reduce what you pay while still securing adequate coverage.
The good news is there are several effective strategies Atlanta homeowners can use to lower their insurance costs. Taking the time to shop around, opt for higher deductibles, bundle policies, enhance home security, and maintain good credit can lead to significant savings every year. This article will explore these and other actionable tips to help you pay less for superior home insurance in Atlanta. And you can also get help from our guide to buy a house with little money down.
Why Paying Less for Home Insurance Matters
The Cost of Home Insurance in Atlanta
As noted above, the average Atlanta homeowner now pays nearly $2,000 annually for home insurance. That’s roughly $167 per month just for home insurance alone. Costs are on the rise due to increased frequency and severity of claims from events like storms, fires, and floods. Higher replacement costs for damaged homes also drive premiums upward.
Ways High Premiums Hurt Your Finances
Besides being a major line item in your household budget, high home insurance costs can negatively impact you in other ways:
- Less money for other goals like savings, retirement, vacations
- Reduced ability to qualify for a mortgage since insurance factors into debt-to-income ratios
- May prevent you from buying optimal amount of coverage or needed add-ons
- Chance of falling behind if rate hikes or income loss make premiums unaffordable
Clearly, there are compelling financial reasons to lower your costs for home insurance in Atlanta. The good news is there are proven ways to do just that.
Tips to Reduce Your Home Insurance Costs
1. Shop Around and Compare Rates
The single most effective way to save money on home insurance is to regularly compare rates from different providers. Loyalty rarely pays off, as insurers often raise rates on existing customers. Shopping around generates quotes and leverage to motivate your current company to offer a better rate.
Getting Quotes is Key
- Compare rates at least once per year
- Get quotes from 3-4 insurers including direct, local and national carriers
- Ask current agent to beat competitor quotes you’ve received
- Be open to switching companies to achieve lowest rate
Use Online Comparison Sites
- Insurance.com
- QuoteWizard.com
- PolicyGenius.com
These sites provide instant quotes from multiple insurers, simplifying the process. Look past the initial quote and compare full coverage, limitations and discounts. Meeting with agents still provides advantage of expert advice.
2. Raise Your Deductible
Deductibles are what you pay out-of-pocket on a claim before your insurance covers the rest. One surefire way to lower premiums is to take on more risk by raising your deductible. Just be sure you have adequate savings to cover the higher amount in the event of a claim.
Understand How Deductibles Work
- Insurers charge lower premiums for higher deductibles
- Typical options range from $500 up to $5,000
- Higher deductible means more money you pay first on claims
- Must weigh savings vs ability to pay more on claim
Choose a Deductible You Can Afford
- Start by raising 250/500 deductibles to $1000/$2000
- Consider $2500 or $5000 deductible if savings are substantial
- Account for savings towards deductible amount in emergency fund
- Re-evaluate deductible yearly and adjust as needed
Even moving from a $500 to $1000 deductible can save 15% or more in many cases. Just take a balanced approach based on your finances.
3. Bundle Your Insurance Policies
Insurers offer attractive discounts when you bundle multiple policies under one roof. Combining home and auto insurance with the same provider is most common. Bundling other policies can produce additional savings.
Multi-Policy Discounts
- Home and auto bundle discounts range from 10-15% typically
- Applies when you insure both with the same company
- Larger discounts available if you add umbrella, flood or other policies
- Discounts increase the more policies you can bundle together
Auto Insurance Bundling
- Shop same insurer for auto and home for multi-policy discount
- Consider raising your auto deductible to lower that premium too
- Combining home and auto is the easiest way to bundle for most
Bundling Other Policies
- Umbrella insurance on top of home & auto increases savings
- Add in flood, boat, RV insurance to bundle if applicable
- Non-insurance accounts may also count like banking or investments
4. Install a Home Security System
Adding security measures like alarms, monitoring, cameras and lighting deters crime and earns you lower premiums in return. Most insurers offer security discounts, with 5-15% savings common.
Security Discounts Overview
- Most insurers offer discounts for installed security systems
- Savings ranging from 5% to as much as 15% or more
- Larger discounts for professionally monitored systems
- Security features like cameras, lighting and locks also reduce rates
Specific Upgrades that Pay Off
- Professionally monitored alarm system (10-15% discounts)
- Smoke detectors, fire alarms, sprinklers (up to 5%)
- CCTV cameras, exterior lighting (5%)
- Deadbolt locks, kick-proof doors (2-3%)
- Fences, vehicle GPS tracking also score discounts
The best value comes from adding a mix of lighting, cameras, alarms and monitoring. A security upgrade can quickly pay for itself through lower insurance premiums.
5. Maintain Good Credit
Surprisingly, your credit score also influences home insurance rates. Insurers use credit-based insurance scores to set premiums. Better credit equals bigger discounts. Monitoring it regularly helps spot and resolve problems before they impact your score.
Credit Score Basics
- Insurers use “credit-based insurance scores” derived from your credit report
- Score factors include payment history, total debt, credit history length, new credit
- Scores range from 300-850, with 750+ considered excellent credit
- Higher scores signal responsibility and lower risk, resulting in lower premiums
How Credit Impacts Insurance Rates
- Those with poor credit pay up to 3x more than those with excellent credit
- Maintaining a score of 760+ qualifies you for the best insurance rates
- Bad credit indicates higher risk and often leads to much higher premiums
Monitoring Your Credit Report
- Check reports from the 3 bureaus annually at AnnualCreditReport.com
- Dispute any errors with the bureaus to fix inaccuracies
- Limit credit checks by only applying for needed new accounts
- Use credit monitoring services to stay on top of changes
Bottom Line
The average Atlanta homeowner pays nearly $2,000 a year for home insurance. Fortunately, there are a number of ways to reduce what you pay by shopping around, raising deductibles judiciously, bundling policies, adding security, and maintaining excellent credit. Put these tips to work and you can save hundreds of dollars per year on one of your largest household expenditures.
Summary of Ways to Save
- Compare rates annually from multiple insurers
- Raise deductibles to shift risk and lower premiums
- Bundle home with auto and other policies
- Add security features to deter crime and earn discounts
- Keep credit score 760+ for the best premium rates
Follow these steps and saving 15-25% or more on Atlanta home insurance is very achievable.
Next Steps to Finding Cheaper Home Insurance
Now that you know how to save substantially on home insurance costs in Atlanta, make a plan and take action. Here are some suggested next steps:
- Gather current policy details like coverage, deductibles, add-ons
- Set calendar reminders to shop rates yearly at renewal time
- Research insurers like Allstate, State Farm, Progressive and compare rates
- Ask your agent to review your coverage needs and suggest cost-saving adjustments
- Take steps to improve your credit score if needed to earn lower premium rates
- Add any missing security features like alarms, cameras, lighting
With a proactive approach, a little time invested upfront can yield years of future savings on your home insurance. Shopping smart, securing discounts and monitoring costs periodically are the keys to controlling this major expense. Put these tips to work for you and keep more money in your pocket while getting the home insurance protection you need.
