There are simple steps you can take to cut the cost of your home and auto insurance, while continuing to be financially protected against catastrophes.
The following five are some of the biggest mistakes consumers can make, and some of the practical suggestions we compiled for you to see better ways of cutting your insurance costs:
1. DON’T: Confuse Real Estate and Rebuilding Value. Insurance is designed to cover the cost of rebuilding your home, not what you could sale it for on market value. Make sure you have enough coverage to rebuild your home AND replace all your belongings in the event of a disaster.
DO: Raise your deductible. A small increase from a $500 to $1,000 deductible could reduce your premium considerably.
2. DON’T: Judge a policy just on price. It’s a good idea to make sure the company is finically sound, provides you with good customer service and offers the policy that is right for you.
DO: Ask friends and family for referrals. You should select a company that has a reputation for good customer service and will respond to your needs.
3. DON’T: Neglect to purchase flood insurance. Damage from flooding is not covered under standard homeowners policies. Coverage is available from the National Flood Insurance Program.
DO: Call your local independent agent to assess your flooding risk.
4. DON’T: Do the minimum. Purchasing only the state required amount of liability insurance for you automobile mean you are like to pay more out of pocket if you were to be involved in an accident and sued as a result.
DO: Consider shopping for the best policy, taking higher deductibles, dropping collison/comprehensive coverages on older, less expensive cars.
5. DON’T: Count on your landlord. Too many people neglect to buy renters insurance thinking their landlord is responsible for their belongings. Your landlord is only responsible for the structure of the building, not your personal possessions.
DO: Look into all available discounts when buying insurance. Buying several policies with the same insurer, such as renters, auto, and life will generally provide significant savings.