How to SAVE Money on Your Premiums…
*When reviewing rates, always review the total package (i.e. home and auto). Often, some carriers will have a better rate on the home as opposed to the auto however, the total calculation needs to be reviewed when determining the best scenario. For example, Safeco’s rates on their home rates are not always the most competitive, but their auto rates are MUCH lower, making the total package better than most.
*Consider a higher deductible. Most people now have a $500 deductible on the auto and $1,000 deductible on the home.
*When reviewing rates, make sure to consider the wind/hail deductible. Some carriers will now require a 1% deductible for wind/hail claims. If your deductible is $1,000 and your replacement cost is $250,000, your wind/hail deductible would be $2,500. This means any claims related to wind/hail are subject to a separate, larger deductible. If your current policy has $1,000 deductible, you’ll need to get an accurate comparison.
*Do NOT skimp on coverages. Dropping your liability limits saves very little in your annual premium.
*If you own a rental, also assess the total package when shopping rates. Some carriers will require the primary residence in order to consider the rental property. Their rates can be ½ of what the other carriers offer.
*Ask to have your home’s replacement cost recalculated. Each year the carrier will increase the dwelling coverage to protect against inflation.
*Consider a higher deductible when reviewing your health insurance options. If you are looking to reduce your premium a high deductible plan packaged with an accident/critical illness plan will provide you with a reduced rate and the protection you need in the event of something major. The accident/critical illness plan pays you up to a certain amount in the event of a diagnosis of an injury, cancer, heart attack, or stroke.
*Stay within your network! Do not rely on your doctor to make sure you are within the network. The doctor often will provide suggestions based on services needed. The networks have changed pretty drastically this year.
*If you originally obtained a rate on your life insurance as a smoker, ask to have your rate adjusted to nonsmoker. The carrier will require a swab test to confirm you are a nonsmoker.
*Term insurance is much less expensive than permanent/whole life insurance. Term insurance can last up to 30 years. I normally recommend purchasing term insurance to pay any of the expenses you cannot afford if your significant other was no longer here (i.e. mortgage payment, daycare, etc).