3 CHANGES THAT COULD HELP YOU CUT YOUR INSURANCE COSTS
As we are transitioning to the return of a pre-pandemic lifestyle, prices continue to be on the rise.
The annual inflation rate in the U.S. accelerated to 7.5% in January 2022, per tradingeconomics.com. Also stating that it’s the highest since February 1982.
From used car prices and building materials to food costs and insurance rates, we are all experiencing rising costs across the economy. The cost increase to repair and replace vehicles and homes are demanding a raise in insurance rates as well.
Here are 3 suggestions that can help cut costs on your insurance premiums.
1) REVIEW YOUR POLICY…ANNUALLY. This is important, not only to make sure you and your assets are fully covered, but you also sometimes may find your policy goes beyond what you need. You may be paying for coverage on something you no longer need or own.
2) HIGHER DEDUCTIBLES. A deductible is the amount you pay following a claim, before your insurance kicks in to pay the rest, up to your limits of coverage. Raising your deductible lowers your insurance premium. This option could be a fit for you if you for one, are less likely to have a claim (this is where being a good driver could earn you bonus points) and two, you can afford to reduce your coverage limit by the amount you are raising your deductible to, in the event of a claim. This is because at the time of a claim, your coverage limits are going to be reduced by your deductible before the insurance company pays for repair or replacement.
3) DISCOUNTS, DISCOUNTS, DISCOUNTS! Another important reason to review your policy every year is to check for possible discounts that you may not have previously qualified for. Here are some common discounts:
- Multiple policies (bundling home and auto) - Pay in Full
- Paperless billing - Claims Free
HOME: - Monitored burglar alarm, Monitored fire system, Security features (deadbolt, smoke alarm, carbon monoxide detector, etc.)
AUTO: - Safe driver course, Restricted mileage, Driver tracking, Anti-theft device, Auto-braking, Good student discount.
*These options are customizable, based on your financial and coverage needs and can be best tailored to you with the help of your independent insurance agent.