Sunday, February 12, 2006

Insurance Renewal Time Already?

A lot of insurance companies have their renewal time at the beginning quarter of the year. As the bill gets bigger and bigger each year, you are wondering what to do to lower it.

Here are just a few suggestions:

  • Most people insure their home for the cost to buy a new home. When deciding how much to insure your home for, don’t include the value of the land. Only the cost of rebuilding.

  • Inquire about special discounts with your present insurer. Are you eligible for a long time customer discount? Can you get a discount for also having your automobile insurance with them? Do they offer a discount to you if you are over the age of 55?

  • Ask your employer if they offer a group coverage rate. Just like health insurance, some employers offer home and auto coverage at a discounted group rate.

  • Call around! Even through your present insurer may offer long term discounts, it still may be a far better value to go somewhere else.

  • Is your home safe? Ask you insurer to do an evaluation of your home and if they give a discount on insurance if this is done. (Smoke Detectors, Burglar Alarms, Carbon Monoxide Detectors)

  • Raise your deductible to $1,000 or maybe $2,000 if your insurer will let you. This maybe able to save you over 20% on your monthly payments.

Finally, review the insurance company’s financial rating. You want to hire a company that has an A+++ rating to insure that the company is strong enough, that if there should be a major disaster, that they will be able to pay your claim.

Todd Clark – broker
Kastings & Associates