In today’s unsettled economy, many people are looking for ways to stretch their money, but sometimes this includes altering insurance coverages to dangerously low levels or eliminating coverage entirely. If you’re thinking about changing your coverage to save money, consider these key issues below.
Do:
- Make sure you’re getting the appropriate discounts and credits: Most insurers offer a variety of policy credits and account discounts that can translate into significant savings without endangering the level of protection you need for your home, autos and other valuable property. Depending on the Company, if you purchase multiple policies through the same insurance company, you’ll receive further discounts. People who own motorcycles or boats and who complete approved safety courses can qualify for discounts, and families with teen drivers who earn good grades in school may qualify for auto policy discounts.
- Increase deductibles for cost savings: Only a small percentage of homeowners have claims in any given year, so you might consider increasing your deductible. But, if you are going to raise your deductible, make sure it’s something you can afford should you have to file a claim.
- Specialty lines coverage options: Own a classic car or RV? If the use is seasonal, you can typically reduce your coverage to comprehensive/other than collision only during the off-season, and then add full coverage back on when you are actually using the vehicle.
- Full payment on policy: Depending on your financial circumstances, you may be able to make lump-sum payments instead of partial premium payments, such as monthly or quarterly. Partial payments often include small transaction fees, so paying the full amount can eliminate those extra costs.
Don’t:
- It may be unwise to carry only the minimum state-required amount of uninsured/under-insured motorist coverage on auto policies, or to cancel it entirely if it is not required in your state: The correlation between the percentage of uninsured motorists and the unemployment rate is high. When the economy is struggling, more people go without insurance. You want to make sure you’re protected in this instance.
- Ignoring renters insurance: This coverage is often overlooked no matter what shape the economy is in. Landlords’ policies generally only cover the structure, not the individual renters’ contents. Imagine having to replace furniture, clothing and other personal property out of pocket because you excluded this essential, affordable coverage and then suffered a devastating loss from a burglary or other covered event.
Saving money is important, but so is making sure that you and your possessions are protected. We can help make sure you have the appropriate protection at a price you can afford.