Save money on auto insurance
This is a quick blog, a brief run-down on the topic of saving money on insurance. You may have more questions after reading, and that goes along with one of the tips – “Keep asking questions…”
Before you start reading, here are some definitions of insurance terms for reference.
Peril: cause of loss, for example, fire, lightning or water.
Premium: what you pay for insurance.
Everyone wants to know how to save money on home insurance or auto insurance or business insurance. Nowadays, insurance companies provide a wide-variety of discounts to help bring down your premium payments. By providing complete and up-to-date information to your Broker each year, you can get the right coverage for your risk(s) at the best price.
Here are some quick tips on saving money on insurance:
- Provide more details: some insurance companies now use a formula to provide you with a more accurate rate based on the information you provide. They start with a base rate for your risk (your home or your car), and then add dollars to that for added protection beyond the fire peril (for example, water, wind, collision, etc.), and then deduct discounts (for example: driver training, claims free, mortgage free, credit score, loyalty discount, etc.).
ALSO: Putting your home and auto (and sometimes, commercial) insurance with the same Insurer can give you a multi-line discount. If you have the same renewal date, you may be eligible for a “combined policy” discount, which may be even more than the multi-line (i.e. multiple policy) discount.
- Avoid unnecessary charges: don’t miss payments – when an insurance company extends credit to you, make sure you understand the terms because the consequences for missing payments will not only cost you money, it can also impact future insurance premiums. Specifically, the insurance company will charge you a fee for the missed payment and so will the bank. So, not only will you have to make up for the lost payment, it could cost you over $40 or $50 or more to get squared up before your next payment comes due. You may be better off finding a company with more lenient payment terms or lower late fees, even if the insurance premium is higher. You may have to review your budget or payment schedules for all of your bills.
- Ask your insurance broker: the more you know about your own policy and how it works, the better able you are to secure the best coverage for you, at the right price and make sure you are getting all of the discounts you are eligible for. We say the “right” price because the lowest is not always best. You may sacrifice valuable broker service and claims service by going with the cheapest quote. Also, what’s cheap today, may be expensive tomorrow – costing you time and money to shop for a new rate (your time is worth money too).
Compare apples to apples: when comparing quotes, make sure you are comparing at the same level of limit and coverage. If the premium is a lot cheaper, that’s a red flag – ask your Broker for assistance in comparing products. We know that we won’t always have the best price each year, but as your Broker, we’ll tell you why and when and we’ll work with you to help get that price down as soon as possible.
- Keep asking questions: things change – your insurer may provide new discounts or your circumstances have changed making you eligible for more discounts. Even if you ask the same question year after year, we can appreciate that’s how to learn – by asking questions, repetition and practice.
Short and Sweet
That was a very brief run-down and you may have more questions. If you have specific questions, please enter in the comments below, or you can contact us on our website. We are happy to hear from you, our clients. The more we know about you, the better able we are to protect you. The more you know about insurance, the better able you are to protect yourself at an affordable price.
If it’s the wee hours of the morning and you’re looking to read more, here are some other links you may find helpful…