Much like the price of groceries and gasoline, insurance premiums increase. Especially if you have not had a claim, you may wonder why the costs of your insurance have increased.
The insurance premiums are closely linked to costs for work, building materials and healthcare. As these prices rise, so does the cost of repairing damage following a car accident or repairing or replacing your home, car, and belongings.
Another reason for rising premiums may be the number of claims on your insurance. When the losses are high, the risk may be higher than calculated and premium adjustments may be needed to compensate for the increased risk that your insurance company accepts.
However, you have some control if you are looking for ways to reduce your insurance costs:
SEEK GUIDANCE FROM AN INDEPENDENT AGENT
Prices and coverage vary from company to company, so consider your options. But do not just shop by price because coverage and service are the most important factors. Seek professional expertise from an independent agent who represents a variety of insurance companies and can help you find options that best suit your needs.
THINK OF HIGHER SELF-AGREEMENT
Deductibles are what you pay before your insurance takes effect for a covered loss. By being willing to take on a higher deductible, you can lower your premium costs, sometimes significantly. When choosing a higher deductible, make sure you have enough money set aside to pay your deductible in the event of a claim.
KNOW THE INSURANCE COST BEFORE A NEW PURCHASE
Buying a new house or car? It is important to take into account how much the insurance will cost. Not all home and car insurance will be priced in the same way. Some cars are safer, have lower repair costs or have a lower theft rate ̵1; factors that can affect the insurance premium. Two homes for sale for $ 250,000 might not cost as much for insurance either, if one was built with materials that are now obsolete and could increase the insurer’s replacement cost..
BUY YOUR INSURANCE THROUGH A COMPANY
Most operators offer discounts to place all your business with them. This can be more cost effective than letting your home and car be written through separate operators. It can also be a good idea to have an agent who handles all your insurance policies to make sure there are no gaps in your coverage.
PROTECT YOUR HOME FROM POTENTIAL RESPONSIBILITIES
Do you have a home security system, backup generator, automatic water shut-off system or other function that makes your home less likely to have a large claim? Be sure to discuss the protection features of your home with your agent, as there may be a credit to be a better risk.
REVIEW YOUR POLICY AT LEAST ONCE A YEAR
Life goes fast and things can change from year to year. Are your policy boundaries still adequate for your lifestyle? Have you bought big tickets all year round? It is important to review to make sure that your policies are up to date and that you do not miss the new car that you replaced a few months ago, the basement that you finished or the new jewelry you received as a gift.
INVESTIGATE POSSIBLE DRIVER CREDITS
Talk to your agent about how your household has changed over the past year. Has anyone taken a driver improvement course? Has your daughter gone to school without her car? Maybe your son got a good grade. Check with your agent to see if your insurer offers credits for these items.
Cheaper is not always better, but you do not have to pay for more than you need or miss out on discounts you are entitled to.
Coverage described here is in the most general terms and conditions and is subject to actual policy terms and exceptions. For actual terms, conditions and exceptions, see the insurance or contact your Bolder Insurance independent advisor.
This article is a compliment from The Cincinnati Insurance Company, a partner of Bolder Insurance.