When shopping for insurance, most people are unaware there is much more to insurance than trying to obtain the best pricing. How can one not think that after viewing the hundreds of insurance commercials promoting better pricing and all sorts of discounts? But do you know what you are really purchasing after they have slashed your bill in half? Guess what, in most cases, a six month policy. Therefore, you are paying for half a year of the coverage for half of the price. Ultimately, resulting in close to the same price from where you started.
However, there are some other areas within your policy that you can cut costs. But, is it really worth the risk to save a few dollars? Let’s check it out.
- Lower the limits of liability. This can be adjusted to be as low as the required state law where you reside. Thus resulting in substantial savings. Now, look around you. Do you own a home? Do you have some savings in the bank? Do you have a job? Consider all of the assets that you own. If you get into one substantial accident with a high-end car and it’s totaled, the state law limits on liability won’t come close to the replacement cost of that car. Therefore, you are next in line to cover the difference in the expense. You better be ready to dole out a whole lot cash. So, is it worth trying to save in this area of your policy? Probably not.
- Raise your deductible. This is an easy one. If you don’t have the money to pay the deductible amount, don’t raise it. Be assured that the day you do not have the means to cover this, an accident will happen.
- Drop the collision on your auto. This is a fine idea ONLY if you are driving an older vehicle. In the event that it becomes totaled you need to be sure that you are in a position to pay for either the cost of repairs or a replacement car. However, if you have a loan on your vehicle, this isn’t an option.
- Naming your own price. How can a consumer possibly know what they should have as far as coverage on their policy? One has to be a lawyer to understand the insurance jargon to know what coverage has been compromised in order to meet that price.
The best way to really be sure you are getting the best rates and coverage is to take your policy back to your agent when it comes up for renewal and have them shop their represented carriers. Choosing the right one can make a big difference in securing the best value.
An independent insurance agent represents multiple brands, and can compare coverage and prices
to find the best possible value for your individual circumstances. They are usually vested members of your community who are committed to doing business face-to-face and being our advocate in times of need.
Independent agents also:
- Work for you when you have a claim.
- Are not beholden to any one company. This means you don’t have to change agencies as your insurance and service needs change.
- Are your consultants, working with you as you determine your needs.
- Are value-hunters who look after your pocketbook in finding the best combination of price, coverage and service.
- Offer one-stop shopping for a full range of products, including home, renters, auto, business, life, health, and retirement plans.
- Can periodically review your coverage to keep up with your changing insurance needs.
- Are committed to customer satisfaction-it’s the key to their livelihood
- Treat you like a person, not a number.
- Are licensed professionals with strong customer and community ties.
Here at Donald J. Medeiros Insurance our goal is to try to help our viewers by outlining potential exposures and suggest solutions for all insurance needs. Come visit us at www.donmedeirosinsurance.com or give us a call at 508-678-1271. We look forward to hearing from you! If you have a Facebook account, please fan us at http://www.facebook.com/donmedeiros.Filed Under: How to Protect Yourself