By Robin Schritter, Regional Vice President, HUB International (An Interview with Rey Post)
Q. What suggestions do you have for our readers when it comes to saving money on insurance coverage?
A. My best advice is to make sure you aren’t being “penny-wise and pound-foolish” when it comes to having adequate insurance coverage.
There are, however, a few ways to economize on costs. For instance, when it comes to your auto policy, you could consider increasing the deductible. Most common deductibles are $250 for comprehensive and $500 for collision. You can consider increasing the former to $500, and the latter to $750. Remember, however, in the event of a claim, the deductible you carry on your auto insurance is the amount you will have to pay the repair shop when you pick-up your vehicle.
If you are a senior driver, you may also be able to save money on your auto insurance via discounts on defensive driving courses. Also, good student credits on insurance apply to kids who are 16 years old, are junior’s in high school and have a 3.0 grade point average.
Q. How about cost-saving measures when you “package” your insurance policies?
A. Absolutley! When you carry more than one policy with the same insurance company, you may be able to receive an additional discount.
Also, how you pay your insurance can also save money. Consider having an automatic draft from your checking account to pay for policy premiums. Or for a double bonus, have your payment charged monthly to your credit card and receive not only a discount, but you might also benefit from credit card mileage points, or cash back rewards.
Q. What homeowner insurance cost-savings can you recommend?
A. I recommend that your readers re-visit the deductible option on their home insurance policy. If you’ve had the same policy for a number of years, you may have a very low deductible like $250, and you’re paying an added premium for that low deductible. Consider raising the deductible to $500, $1,000, or even $2,500.
Remember, in the event of a claim, your payment from your insurance company would be reduced by the deductible amount and you would be paid the difference.
You may also discover that your home insurance policy offers some special coverages. For example, your insurance company may offer longevity discounts for being insured with them continuously for a number of years, and for being loss free.
Q. Any final thoughts on ways to save money with your insurance policies?
A. The best time to shop for your insurance is when your record is clean. This means no accidents, or tickets for any driver in at least the last three years. Also look for policies with annual renewal terms, and then you can lock in that good rate for a year, instead of just for six months.
