This week I really wanted to find something that could be informative in relation to questions we hear all of the time. I found this incredible list that nearly nails 70% of our non-payment related questions on the head!
1. Insuring your home for its market value rather than replacement cost. Although this can reduce premium, you are putting yourself at financial risk in case of disaster. (Many companies won't even allow this type of cost saving measure anyway.)
- Instead- To save money, take a look at raising your deductible and increasing your risk by a nominal amount rather than a catastrophic one.
2. Selecting an insurance company by price alone. As independent agents, we love to help you get the best rate possible, but we usually look out for your best interest in the fact that sometimes "cheap" is truly that, and those companies aren't one you want to be insured with.
- Ask your agent about the company they are giving you a quote from - If the information is unavailable or unfavorable, ask them to find you another company with a competitive premium but better ratings. In this case it may financially cost a few more dollars, but the frustration and headache of dealing with a poor company will be very mentally, emotionally and time costly.
3. Dropping flood insurance. Flood insurance is typically recommended or required by a lender based on data and statistics of the location of your home. Although it may seem highly unlikely, it most likely has a greater chance of flooding in your home than those of you who continually pay money to play the lottery!
- If you are in the process of purchasing a home, do the research of the flood plains, and purchase in lower risk areas if you want to avoid this insurance. If you already are in the home and the lender is now requiring flood insurance, do your research and possibly get an engineering firm to do an elevation certificate, this may be some money up front but may save you from the insurance altogether or at least reduce your premium.
4. Only purchasing the legally required amount of liability for your car. Many quality independent agents will not even entertain this idea for you to save you and themselves from future headache. If you do however, think this is how you want to go, you must understand that any lawsuit incurred in which your limits are exhausted, then falls on your shoulders personally. In many cases this happens very quickly.
- Instead to save on your auto insurance, consider the age, condition of your car and visit with your agent about the possibility of either dropping one or both of the physical damage coverages, or possibly increasing your deductible again.
5. Neglecting to buy renters insurance. Renters insurance not only covers the belongings you own, which in most cases add up to a lot more than you may think, but also protects you in liability claims.
- To save money on your insurance, ask your agent about adding a renters policy to your portfolio, and many times, with the multi-policy discounts, your renters is nearly paid for by the savings on your auto! Don't believe me on this one? Try it!
If you would like to read the article I found in its entirety, please do! Click here...
Thank you for becoming a more informed insurance buyer and remember, at Advantage 1 Insurance, every policy comes with an agent!
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