Saving On Insurance Costs

WASHINGTON, DC (WUSA)-- Jane Graver makes a living selling green tea. She also want so save some "green." So Graver is thinking about lowering her homeowner's insurance coverage; especially since the value of her house has dropped.

"My house lost over 200-thousand dollars in value over the last three years," sighs Graver.

However, insurance experts say this is the wrong move.

"They confuse market value with the cost to rebuild your home," says Gary Heiligman, vice-president of the Independent Insurance Agents and Brokers of America (IIABA). "It's two different things."

There are ways you can save.

First, you can lower your premium by increasing your deductible. This way you only pay more if you actually file a claim.

Second, look at the riders you have for jewelry, furs or other valuables, such as collectibles.

"If you no longer own those items you want to make sure your agent knows that so they can remove the premiums you were paying to cover those items specifically," says Heiligman/

If you're driving your car less, that should lower your annual mileage; thus, save you money on your auto policy.

If you've installed safety devices on your house or car, ask your insurers to give you credit for them.

"Make sure they're maximizing all the discounts they're qualifying for," says Heiligman.

Heiligman also warns, if you're paying for credit insurance, skip it.

":Credit insurance isn't protecting you as a consumer, it's protecting those people you owe money to."

Another tip, review every policy you have and ask your agent to shop your rates. More times than not, you will save money.