Insurance is a necessary yet costly aspect of the budget. You should always compare rates for auto, home, health, business and life insurance to ensure you’re getting the best price for your coverage.

• Check with your insurance provider to see all applicable discounts. If you have two companies covering your insurance needs, ask about a discount if one company covers both your car and homeowners insurance. You could save up to 30 percent by bundling your insurance.
• Consider raising your deductible for lower rates. You could lower your monthly payment 10 percent by increasing your deductible and taking on more personal risk. Just make sure you can afford the higher deductible payment in the event of a disaster. If you’re not comfortable with a higher deductible, then it may be worth the extra money each month for your peace of mind. You can also put aside the monthly savings in an account until you have accumulated the higher deductible amount.
• You may even be able to save money by stopping paper statements or enrolling in automatic payments. Saving just $3 per month adds up to $36 per year.
• Know what you’re paying for. Remember, knowledge is power. Take the time to go over your policy line by line and make a spreadsheet with all the pertinent information. Having all the information in one place will not only help you understand your current coverage, but also assist in comparison shopping.

Small changes can add up to a huge savings at the end of the year. Spend an hour today evaluating your insurance needs to potentially save hundreds of dollars per year.

Evaluate your insurance needs often, ask questions, and get the coverage you need at the best rate available.

Dana Zeliff lives in Chesapeake and writes a blog full of money-saving tips, coupons and advice. Visit her blog at www.thecouponchallenge.com.