Since automobile insurance is the
most expensive of the personal insurance policies, we will concentrate here.
Drivers Education Course If you are still in high
school, take a drivers education course. It can be worth up to 15% off all of the
coverages your driving effects.(property damage, collision etc,) The discount applies in
most states until you are 21!
Accident Prevention or Defensive Driving Course This course is not only for young drivers or those with bad driving
records. This course is usually 6 hours long and is worth 10% off all of the coverages
your driving effects. The National Safety Council will have information on locations and
availability.
Passive Alarm Systems A passive alarm is one that arms itself soon
after you close the door and requires no intervention and has an audible siren(a keypad in
the car that set before leaving, is NOT passive). Passive alarms can apply to a 15%
discount to your comprehensive or other than collision coverage.
Vehicle Recovery Systems Commonly
known as "Lo-Jack", vehicle recovery systems are activated when your vehicle is
stolen, allowing police to track the location of the vehicle. When combined with
Passive alarm systems, the discount on your comprehensive can increase to 25%.
Higher Deductibles=Lower Premiums Most policies have a standard $200 or $250 deductible on Comprehensive and
Collision. Today's higher priced vehicles are more expensive to insure, thus higher
deductibles, ($500,$1000) bring greater savings. Be sure you can afford that
increase in deductible before making the change to your policy.
Multi-Car Discounts Combining
two or more cars on the same policy can reduce your premium by up to 25% per car(varies by
company).
Multi-Policy Discounts Placing
your Auto & Home insurance with the same company can bring a 5-10% discount on both
policies(varies by company).
Loss or Claim Free Discount Many companies offer a discount of 5% to policyholders who are claim free
in during the last 3, 4 or 5 years. If you are claim free, inquire about the
availability of this discount.
Full coverage on a 1986 Chevette?? Many people still carry full coverage on vehicles with little or no book
value. For example- your car is worth $600 and you pay $180 per year for Comp
& Collision with a $500 deductible. The car is a total loss in an accident. You
would receive $100 after the $500 deductible, but paid $180 for full coverage, so you lose
$80.
College Students Many
companies offer discounts for students away at school with high GPA's. If you have
your car away at school with you(in the same state) and have your own policy, inquire as
to the premium for rating your policy in your schools town(using dorm or apartment
address). This is especially true for students who live in cities, but go to school in an
urban area. If your car is under your parents policy and you DO NOT TAKE IT TO
SCHOOL, they may be eligible for a discount if you are 250 miles or more from home.
You will need a copy of your dorm or tuition receipt to prove residency and may have to
change the address on your drivers license.
REVIEW YOUR POLICY It
pays to review your policy at least annually. Situations change over time, i.e.:
-Perhaps you used to drive 45 miles to and from work and now live around the block from
the office(or better yet, retired). Distance to work makes a big difference in the
rate.
-If you are in your states
assigned risk plan, check with your broker as to when you will be eligible
for insurance through normal channels.
-Maybe you are still carrying full coverage
on that 1986 Chevette.
-If you don't know how to read your
policy, now would be a good time to become educated. Call your agent or broker to
review the coverages, but have your questions ready before you call.
Install an Alarm System Insurance Companies offer up
to a 24% discount for installing a Central Station fire and burglar alarm system.
Central Station means your home is monitored by a company such as ADT or Brinks and in the
event of a fire or burglary, they notify the proper authorities. If you live in an
apartment, condo or co-op, and your building is alarmed(not just smoke detectors), you
should receive a credit. As the association or building manager for a copy of their alarm
certificate and submit it to your company.
Higher Deductibles=Lower Premiums Insurance companies reward us with lower premiums for taking a higher
level of risk(higher deductibles). In some cases the premium can be substantial. If
raising your deductible from $100 to $500 saves you $110 per year, and you haven't had a
claim in 20 years, how much would you have saved??? In today's homeowners insurance
climate, having two or more claims in three years can get you canceled. You ask
"what do I have insurance for"? The answer is.. to restore your home to it's
condition prior to the fire, burglary or other covered loss. IT IS NOT A MAINTENANCE
POLICY! If your 10 year old picket fence blows down in a storm, sure it's covered, but is
it worth putting in a claim for??? Insurance companies in many states are unable to
raise your premiums after you put in several claims- Their only recourse is to cancel your
policy. By the same token, many companies offer a claim free discount. The time to shop
for a better rate is not after you have had a claim.
Renovation Credits Most
insurance companies offer a credit to homes that have been completely renovated.
Complete means just that, interior walls, wiring, plumbing if other than copper or PVC,
and new roof. If you purchased an old home, then renovated much of it, call your
insurance agent or broker as your home may be eligible for a renovation credit or better
rating tier(many companies have different rates based on the age or proximity to water of
a home).
Non-Smoking Household If no one in your house hold smokes, inquire as to the availability of a
non-smoking household credit.
Multi-Policy Discounts Placing
your Auto & Home insurance with the same company can bring a 5-10% discount on both
policies(varies by company).
Frame vs. Brick Check your
policy to see if your home's construction class is correct.
Underinsured vs. Overinsured If you believe your home is insured for too much, supply your agent or
broker with a copy of your survey or building plans and ask that your home be
re-estimated. Be prepared for the possibility that your home is not currently being
insured for enough. Market value is not replacement cost. If you live in a
depressed area, but have a 6 bedroom 3 bath house, the statement "but I couldn't sell
it for that" is not relevant. If your home is underinsured,- you put a full
dormer on two years ago, and never notified the company, in the event of a loss, you will
probably lose the battle. It is your responsibility to notify the company regarding
any material change to your residence. Many people insure their homes to an amount
equal to their mortgage. THIS IS WRONG. Rather than fight with the adjustor on your lawn
after a fire, insure your home correctly. The premium difference is minimal in most
cases. Besides, who else will replace your $100,000 home for $390 per
year?
Safety Equipment Discounts
are available for safety equipment. If your boat is equipped with any of the
following, check with your agent or broker to see if you qualify: GPS, Ship to Shore, VHF,
Depth Sounder,Halon system, Fume detector, Alarm System and
Loran.
Boating Safety Courses If
you have taken the Coast Guard certification course, check with your current company as to
the availability of a discount.
How
can I reduce my rate? Flood Insurance rates
are standard, so you cannot shop for a better rate. Increasing your deductible can
decrease your rates, but you would have to take a $5000 deductible to substantially reduce
the rate.
Raising your foundation or
home out of the flood zone, or to a higher elevation is expensive, but is becoming more
common.
"I
believe my house is rated incorrectly" Call
your broker directly and inquire. Flood rating can be tricky and if your broker has
not seen your house, she is relying on your description. Having an elevation
certificate completed by a qualified engineer at your expense is another
alternative. Some homes were built after the flood maps were surveyed, and are
assumed to be on ground level, unless you can document otherwise.
How
long must I stay in the Assigned Risk? The
answer varies by state. The answer to this question has changed dramatically in the
last year or so. Since the premiums for high risk business is so expensive, several
insurance companies have seen this market as a significant opportunity, thereby making
available policies to drivers with little to no experience! It pays to shop for the lowest
rate when you are in the high risk bracket- BUT BEWARE. There are many
excellent companies that serve as alternatives to the assigned risk plan- usually priced
anywhere from 5-25% below the assigned risk.
Do
I have to stay with the same company 3 years before I can get out? Only if you are not eligible for any of the other non-standard insurance
companies. It is to your advantage to request quotes when you receive your renewal
policy. Ask any of the brokers on this site if they insure drivers with your record
or circumstance anywhere besides the assigned risk.
THE ASSIGNED RISK RATES ARE THE SAME REGARDLESS OF WHICH BROKERAGE YOU BUY
THE POLICY FROM. THE RATES ARE DICTATED BY THE STATE-SO BEWARE!
