Insurance rates for homeowners and auto policies are determined by examining a policy holder's risk factors. According to the Insurance Information Institute, there are certain things that can be done to lower rates for both homeowners and auto policies.

A homeowner’s policy rates may be reduced by shopping around for the best rates and coverage, having a good credit score, reducing the amount of coverage, and choosing a higher deductible. When shopping for a house, consider the following:  access to fire hydrants and a high-quality local fire department can help lower insurance rates. Newer houses and brick homes typically receive lower rates. In addition, most insurance companies give discounts to homeowners for installing home security systems.

Like homeowners insurance, auto insurance rates may be lowered by shopping around for the best rates and coverage, having a good credit score, and choosing a higher deductible. Driving experience and a good driving record will typically lower rates. Some insurance companies offer multiple car discounts. In addition, reducing coverage on older cars will lower rates. Students with good grades, and those who take defensive driving classes may receive lower rates.

When shopping for a car, ask an insurance carrier to find out what the premium will be. A sedan or minivan will typically get a better rate than a sports car, as will a car that is not considered a theft magnet. A less expensive car  usually costs less to repair after an accident, and thus gets lower rates. Choosing a car with safety features or with an anti-theft device typically results in lower rates.