Factors Impacting Your Personal Insurance Rates You May Be Able to Control
Current market conditions that affect your insurance premiums are challenging and may seem out of your control, but there are steps you can take to help keep the cost of your insurance in check.
Review your insurance—It’s wise to review your coverage periodically. We are happy to review your current coverage at any time. You may consider canceling or reducing coverage you no longer need – we will work with you to ensure you have customized coverage to protect yourself adequately.
Compare rates—Rates vary between insurers. To ensure you’re getting the best possible outcome, we can compare your current rate with quotes from other companies. We will ensure we are comparing similar coverages, limits, and deductibles to get an accurate picture.
Increase your deductible—A higher deductible will likely reduce your premium, and it can be smart if you’re willing to pay more out of pocket in the event of a claim. This means you would shoulder a larger portion of the costs in case of a loss, but your regular premium payments would typically be lower. It balances immediate savings and potential future costs, so weigh this option carefully based on your financial situation.
Maintain a good credit score—Many insurance companies have made credit scores an increasingly important factor when quoting insurance rates. Clients may enjoy lower premiums by keeping up with bills, limiting debts and balances, and maintaining a diverse credit portfolio.
Bundle your policies—Clients may garner lower overall insurance costs by purchasing multiple types of coverage from the same insurance carrier. Many insurers we work with offer discounts when you purchase more than one policy with them. Home and auto are commonly bundled for a discount, but discounts may also apply to boats, valuables, umbrella protection, and other specialty coverages. In addition, bundling policies may make it less likely for an insurance company to decline renewal or cancel policies in response to claims. We are happy to discuss multi-policy insurance discounts at any time.
Explore discount possibilities—There may be several ways to qualify for insurance discounts. Insurance companies may offer lower rates if an insured has not filed a claim against their policy for a certain amount of time (e.g., three to five years). In addition, retired people, military personnel, and members of various organizations and associations may be eligible for reduced premiums.Paying your premiums upfront instead of monthly may also help reduce costs. We can help identify discounts that may apply to your situation.
Ask about customer retention programs—Some insurers offer premium discounts or credits to long-term customers.
TIPS FOR HOMEOWNERS INSURANCE
Home insurance remains one of the most frequently purchased types of coverage across the United States. However, for many people, current hard market conditions have made acquiring an adequate policy more expensive and complicated. Consider the following strategies that may help limit rising home insurance rates:
Security and other protective devices—By protecting their property from potential criminal acts, homeowners may also be able to reduce their perceived risk levels and access lower coverage costs. Some of the insurers we work with offer premium discounts for security systems and cameras, smoke detectors, fire alarms, water leak sensors, interior sprinkler systems, and smart or connected home technology.
Liability risk reduction—Most homeowners insurance policies include coverage for personal liability, meaning that incidents affecting third parties for which policyholders or other insureds are responsible could be eligible for financial assistance. Reducing liability risks, such as limiting hosting large gatherings or avoiding attractive nuisances (e.g., swimming pools, playground equipment, and firepits), may help homeowners reduce their rates.
TIPS FOR AUTO INSURANCE
Auto insurance is an ongoing and nonnegotiable expense for drivers. Here are some proven ways to help reduce these costs without compromising on necessary coverage.
Consider usage-based insurance—Usage-based insurance (UBI) tailors your premium based on your driving patterns. UBI could offer substantial savings if you drive infrequently or have safe driving habits. UBI assesses your driving behavior in real-time and may offer discounts for cautious driving. It’s worth noting, however, that not every driver will see lower rates with UBI; it depends on your driving style.
Take a defensive driving course—Some insurers and states offer discounts for completing a defensive driving course. These courses not only potentially lower your insurance rates but also improve your driving skills, leading to safer driving and possibly fewer violations and claims in the future.
Contact one of our Private Client associates to learn more.