Since automobile insurance is the most
expensive of the personal insurance policies, we will concentrate here.
- Drivers Education Course
If you are still in high school, take a drivers education course.
It can be worth up to 15% off all of the coverages your driving effects,
(property damage, collision etc,). The discount applies in most states until
you are 21!
- Accident Prevention or Defensive
Driving Course
This course is not only for young drivers or those with bad driving
records. This course is usually 6 hours long and is worth 10% off all of the
coverages your driving effects. The National Safety Council will have
information on locations and availability.
- Passive Alarm Systems
A passive alarm is one that arms itself soon after you close the
door and requires no intervention and has an audible siren, (a keypad in the
car that set before leaving, is NOT passive). Passive alarms can apply to a
15% discount to your comprehensive or other than collision coverage.
- Vehicle Recovery Systems
Commonly known as "Lo-Jack", vehicle recovery systems are
activated when your vehicle is stolen, allowing police to track the location
of the vehicle. When combined with Passive alarm systems, the discount on
your comprehensive can increase to 25%.
- Higher Deductibles=Lower Premiums
Most policies have a standard $200 or $250 deductible on
Comprehensive and Collision. Today's higher priced vehicles are more
expensive to insure, thus higher deductibles, ($500,$1000) bring greater
savings. Be sure you can afford that increase in deductible before making
the change to your policy.
- Multi-Car Discounts
Combining two or more cars on the same policy can reduce your
premium by up to 25% per car, (varies by company).
- Multi-Policy Discounts
Placing your Auto & Home insurance with the same company can
bring a 5-10% discount on both policies, (varies by company).
- Loss or Claim Free Discount
Many companies offer a discount of 5% to policyholders who are
claim free in during the last 3, 4 or 5 years. If you are claim free,
inquire about the availability of this discount.
- Full coverage on a 1986 Chevette??
Many people still carry full coverage on vehicles with little or no
book value. For example - your car is worth $600 and you pay $180 per year
for Comp & Collision with a $500 deductible. The car is a total loss in
an accident. You would receive $100 after the $500 deductible, but paid $180
for full coverage, so you lose $80.
- College Students
Many companies offer discounts for students away at school with
high GPA's. If you have your car away at school with you, (in the same
state), and have your own policy, inquire as to the premium for rating your
policy in your schools town, (using dorm or apartment address). This is
especially true for students who live in cities, but go to school in an
urban area. If your car is under your parents policy and you DO NOT TAKE IT
TO SCHOOL, they may be eligible for a discount if you are 250 miles or more
from home. You will need a copy of your dorm or tuition receipt to prove
residency and may have to change the address on your drivers license.
- REVIEW YOUR POLICY
It pays to review your policy at least annually. Situations change
over time, i.e.: Perhaps you used to drive 45 miles to and from work
and now live around the block from the office, (or better yet, retired).
Distance to work makes a big difference in the rate.
If you are in your states assigned
risk plan, check with your broker as to when you will be eligible
for insurance through normal channels.
Maybe you are still carrying full coverage on
that 1986 Chevette.
If you don't know how to read your policy, now
would be a good time to become educated. Call your agent or broker to review the
coverages, but have your questions ready before you call.
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- Install an Alarm System
Insurance Companies offer up to a 24% discount for installing a
Central Station fire and burglar alarm system. Central Station means your
home is monitored by a company such as ADT or Brinks and in the event of a
fire or burglary, they notify the proper authorities. If you live in an
apartment, condo or co-op, and your building is alarmed, (not just smoke
detectors), you should receive a credit. As the association or building
manager for a copy of their alarm certificate and submit it to your company.
- Higher Deductibles=Lower Premiums
Insurance companies reward us with lower premiums for taking a
higher level of risk, (higher deductibles). In some cases the premium can be
substantial. If raising your deductible from $100 to $500 saves you $110 per
year, and you haven't had a claim in 20 years, how much would you have
saved??? In today's homeowners insurance climate, having two or more claims
in three years can get you canceled. You ask "what do I have insurance
for"? The answer is.. to restore your home to it's condition prior to
the fire, burglary or other covered loss. IT IS NOT A MAINTENANCE POLICY! If
your 10 year old picket fence blows down in a storm, sure it's covered, but
is it worth putting in a claim for??? Insurance companies in many states are
unable to raise your premiums after you put in several claims - their only
recourse is to cancel your policy. By the same token, many companies offer a
claim free discount. The time to shop for a better rate is not after you
have had a claim.
- Renovation Credits
Most insurance companies offer a credit to homes that have been
completely renovated. Complete means just that, interior walls, wiring,
plumbing if other than copper or PVC, and new roof. If you purchased an old
home, then renovated much of it, call your insurance agent or broker as your
home may be eligible for a renovation credit or better rating tier, (many
companies have different rates based on the age or proximity to water of a
home).
- Non-Smoking Household
If no one in your house hold smokes, inquire as to the availability
of a non-smoking household credit.
- Multi-Policy Discounts
Placing your Auto & Home insurance with the same company can
bring a 5-10% discount on both policies, (varies by company).
- Frame vs. Brick
Check your policy to see if your home's construction class is
correct.
- Underinsured vs.
Overinsured
If you believe your home is insured for too much, supply your agent or
broker with a copy of your survey or building plans and ask that your home
be re-estimated. Be prepared for the possibility that your home is not
currently being insured for enough. Market value is not replacement cost. If
you live in a depressed area, but have a 6 bedroom 3 bath house, the
statement "but I couldn't sell it for that" is not relevant. If
your home is underinsured, you put a full dormer on two years ago, and never
notified the company, in the event of a loss, you will probably lose the
battle. It is your responsibility to notify the company regarding any
material change to your residence. Many people insure their homes to an
amount equal to their mortgage. THIS IS WRONG. Rather than fight with the
adjustor on your lawn after a fire, insure your home correctly. The premium
difference is minimal in most cases. Besides, who else will replace your
$100,000 home for $390 per year?
- Safety Equipment
Discounts are available for safety equipment. If your boat is equipped with
any of the following, check with your agent or broker to see if you qualify:
GPS, Ship to Shore, VHF, Depth Sounder, Halon system, Fume detector, Alarm
System and Loran.
- Boating Safety Courses
If you have taken the Coast Guard certification course, check with
your current company as to the availability of a discount.
- How can I reduce my rate?
Flood Insurance rates are standard, so you cannot shop for a better
rate. Increasing your deductible can decrease your rates, but you would have
to take a $5000 deductible to substantially reduce the rate.
- Raising your foundation or home out of the
flood zone, or to a higher elevation is expensive, but is becoming more
common.
- "I believe my house is rated
incorrectly"
Call your broker directly and inquire. Flood rating can be tricky
and if your broker has not seen your house, she is relying on your
description. Having an elevation certificate completed by a qualified
engineer at your expense is another alternative. Some homes were built after
the flood maps were surveyed, and are assumed to be on ground level, unless
you can document otherwise.
- How long must I stay in the Assigned
Risk?
The answer varies by state. The answer to this question has changed
dramatically in the last year or so. Since the premiums for high risk
business is so expensive, several insurance companies have seen this market
as a significant opportunity, thereby making available policies to drivers
with little to no experience! It pays to shop for the lowest rate when you
are in the high risk bracket - BUT BEWARE. There are many excellent
companies that serve as alternatives to the assigned risk plan - usually
priced anywhere from 5-25% below the assigned risk.
- Do I have to stay with the same
company 3 years before I can get out?
Only if you are not eligible for any of the other non-standard
insurance companies. It is to your advantage to request quotes when you
receive your renewal policy. Ask any of the brokers on this site if they
insure drivers with your record or circumstance anywhere besides the
assigned risk.
- THE ASSIGNED RISK RATES
ARE THE SAME REGARDLESS OF WHICH BROKERAGE YOU BUY THE POLICY FROM. THE
RATES ARE DICTATED BY THE STATE - SO BEWARE!
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