By: Elena Grace Flores
It seems like a reminder to scout around ways to lower insurance costs for your car and home after celebrating New Year. Sometimes finances can be tough but this is not a good reason to go underinsured. The more you have to make sure that you are covered from any destruction when the going gets tough – but what can you do if you only have so much money?
Consider these tips in getting a bargain with your insurance premiums without the risks of being underinsured:
1. Pay a higher deductible up to US$1000 or equivalent in your local currency to lessen your yearly premium to at least 25%. It is important to insure your home on the amount enough to rebuild and furnish the house when disaster strikes. Do not base your home insurance value to the market rate of your property.
2. You can save more on insurance costs if you consider reliability and customer service quality of the insurance provider. You might be able to get full coverage at a lot lesser rate but every time you need something, you need to drive all the way to their office or call them several times before they can act on a single request – is not only tedious but expensive in terms of time and money. Most of all, claims must be processed quickly. You can get testimonials from other insurance buyers you know.
3. Always make damages cause by flooding covered by your chosen home insurance. Statistics shows that flooding is the major cause of home wreck. Choose a higher deductible amount to save up on your premiums but if you live in a flood-prone area, consider adding some elevations to your home structure as preventive measures.
4. Follow the required amount of liability insurance in your locality for your car insurance – and not just the minimum. In the U.S., $100,000 is the standard liability for bodily harm and per accident is $300,000. It’s better to pay enough than live with guilt or be sued. Drive defensively and get a certificate for it also. You might be able to find an insurer that offers discounts for certified defensive drivers.
5. Drop the mentality that just because you don’t own the house, you don’t need to spend on home insurance. The very reason why there’s renter’s insurance. The important thing is to be able to start all over again when all the possessions inside your house are wiped out or damaged by a calamity. You will be able also to pay for any liabilities to other people injured within your vicinity.
It is always beneficial to get one insurance provider for all your insurance needs. You can have discounts for patronizing the company and you will be known by their customer service staff – and enjoy the privileges of a priority customer. So, it pays to be loyal when it comes to buying insurance!