Sometimes people who are trying to save money change insurance coverages to dangerously low levels. Some even eliminate coverage entirely when they’re looking for ways to stretch their money.
If you’re thinking about changing your coverage to save money, here are several key issues to think about. Then, give us a call at (610) 413-9880. Berkshire Insurance can help make sure you have the right protection at a price you can afford.
How to Save on Insurance
Make Sure You’re Getting Available Discounts and Credits
Most insurers offer a variety of policy credits and account discounts. These can provide sizeable savings without risking the level of protection you need for your home, autos and other valuable property.
For example, if you purchase more than one policy through the same insurance company, you may get further discounts.
Do you own a motorcycle or boat? You may qualify for discounts by taking approved safety courses.
Do you have teen drivers in the family? You may get a discount on your auto policy if they get good grades in school.
Increase Deductibles for Cost Savings
Only a small percentage of homeowners have claims in any given year, so you might want to increase your deductible.
Specialty Lines Coverage Options
Own a classic car or RV? If you only use them during certain times of the year, you may be able to reduce your coverage to liability only during the off-season. Then, add full coverage only when you are actually using the vehicle
Full Payment on Policy
If you can, you may want to make lump-sum payments instead of monthly or quarterly premium payments. Partial payments often include small transaction fees. Therefore, paying the full amount can eliminate those extra costs.
Some Insurance Decisions to Avoid
It is just as important to understand what not to do as you look for cost savings. Here are some situations you should avoid:
Carrying the Minimum State-Required Auto Insurance Coverage
It may not be smart to carry only the minimum state-required amount of uninsured/underinsured motorist coverage on auto policies. According to the Insurance Research Council (IRC), the correlation between the percentage of uninsured motorists and the unemployment rate is high. When the economy is struggling, more people go without insurance. You want to make sure you’re protected in this instance.
Ignoring Renters Insurance
This coverage is often overlooked. However, landlords’ policies generally only cover the structure, not the individual renters’ contents. Imagine having to replace furniture, clothing and other personal property out of pocket after a burglary or other covered event because you excluded this essential coverage.
According to the National Association of Insurance Commissioners, the average cost of renters insurance is between $15 and $30 per month. Isn’t that a small price to pay for peace of mind?
Saving money is important, but so is making sure that what you’ve got is protected.
How to Get the Right Insurance Coverage at the Best Price?
The agents at Berkshire Insurance have the experience to ensure you have the right coverage. And as independent agents, we check with multiple insurance companies to ensure that you get the best price on that coverage. Give us a call at (610) 413-9880 or contact us online.
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