I Asked ChatGPT To Lower My Homeowners Insurance — These 5 Fixes Mattered Most
Homeowners insurance is a necessary evil that seems to increase more often than your grocery bills. In fact, a recent survey by the Pew Research Center found that 71% of American homeowners say the cost of their insurance has gone up in the last few years while 42% say their insurance has increased a lot.
Curious as to whether a homeowner is truly stuck with an ever-increasing bill, I asked ChatGPT how to lower insurance costs. The AI gave me five fixes that could actually save you money. Scroll down to learn more.
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1. Shop Around Regularly
Regularly comparing quotes can save you a lot of money on your homeowners insurance bill. ChatGPT said insurance companies calculate risks differently, which is why the same home can get very different quotes from different insurers.
ChatGPT said if you shop around every year or two, instead of automatically renewing with the same company, you may find lower rates. If getting quotes from several providers feels like a lot of work, an insurance broker might help compare options for you.
2. Bundle Home and Auto Insurance
Another fix, which ChatGPT said can create meaningful savings, is to bundle home and auto coverage. Insurance companies often reward customers for keeping multiple policies with the same company with good discounts.
ChatGPT said that buying policies together could save you more money than buying them individually, even if you find one policy that looks cheaper by itself. But it warns that not all packages deliver the greatest value. That’s why you should still compare the total cost.
3. Carefully Raise Your Deductible
A deductible is the amount you pay out of pocket when a covered incident occurs, before the insurance company starts paying for the claim. ChatGPT said raising your deductible from $500 to $1,000 or $2,500 could lower premiums because you’re agreeing to take on more risk.
But there is a big downside to this. If you have to file a claim, you’ll pay more out of your own pocket before your insurance coverage kicks in. According to ChatGPT, raising your deductible is most effective for homeowners with enough emergency savings that they can comfortably pay it should an unfortunate incident occur.
4. Review Coverage Limits and Inquire About Discounts
Many homeowners may be paying for coverage they don't need or missing discounts they never knew existed, the chatbot said. It recommends checking to see if you’re paying for the following:
Duplicate coverage
Unwanted policy add-ons
Coverage limits that don’t work for your needs
And if you want to save even more money, inquire about under-the-radar discounts. Insurers often give discounts for automatic payments, a history of no claims, home safety upgrades, paperless billing, a new roof, and so on. They're unlikely to volunteer this but won't hide it from you if you ask.
ChatGPT cautions against reducing liability coverage just to cut costs. Liability protection is often one of the most valuable parts of the policy.
5. Avoid Small Claims When You Can
Another tip from ChatGPT is to think twice before filing smaller claims. Making frequent claims can raise premiums or eliminate claim-free discounts. That doesn’t mean you shouldn’t file a claim when you truly need help, but sometimes it makes more sense to pay the small repair bill yourself.
This article was provided by MoneyLion.com for informational purposes only and should not be construed as financial, legal or tax advice. It was created with the assistance of artificial intelligence and reviewed by our editorial team for accuracy. However, AI-generated content may be inaccurate, incomplete or outdated. You should independently verify important information through reliable sources before making any decisions based on this content.
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