My Insurance Premiums Are out of Line!

Tony Grahn
Written on December 31, 2018

Are you paying too much for your Auto and Homeowners Insurance? Consider these tips:

Multi-Policy Discount

Most insurance companies will give you a multi-policy discount for having both your auto and homeowners insurance with them. So, if you rent an apartment, carrying renters insurance won’t just give you the protection you need, and that your landlord might require you to carry, but it should lower your auto premium.

Higher Deductibles

On vehicles which you carry full coverage,  consider carrying at least a $500 comprehensive and $500 collision deductible.  High deductibles help keep your premium down but also shows the insurance company you don’t plan to “nickel and dime” them on the petty stuff.  For a Homeowners Insurance Policy, depending on the size of your home, you should consider at least a $1,000 deductible, if not $2,500 or greater.

Calling Your Agent for Help

Insurance premiums are one of those things that seem to creep up over time if you’re not paying attention.  While agents should monitor increases internally, they cannot shop all of their clients every year due to time constraints. However, if you notice an increase seeming out of line, or if you haven’t called about options for a few years, it’s a good time to do so.  Some times they’ve added a new company they can price, or your existing company might have a new program you qualify for, or perhaps they will allow the agent to rerun your credit score- in case it has improved. 

Shopping Your Insurance with Other Insurance Companies

Assuming you don’t already have an independent agent that can look for other options, you might need to call around.  Insurance companies all have periods of unprofitability, due to catastrophic storms and many other factors, so it’s not uncommon to see them take rate increases.  If you notice an increase of 5%-10% or higher, and you’ve had no claims or tickets in the past few years, you might want to look at options. 

Inform Your Agent of Factors That Most Insurance Companies Give Credits For

For example, if you have youthful operators and they have a B+ grade average, or better; if they go to college in another state and do not take a vehicle with them; if you have any kind of alarm system on your home, including smoke detectors.  Some insurance companies even give credits for certain affinity programs.  For instance, if you’re a college graduate, if you are a CPA, or if you belong to another recognized trade group that normally consists of members who have fewer claims and higher scores. 

Hopefully, these have been helpful tips to reduct your premiums. If you would like our help, don’t hesitate to contact us!