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Cheap Home Owner Insurance – Self Insure And Save Money

admin — Tue, 10 Aug 2010 07:46:05 +0000

Cheap Home Owner Insurance – Self Insure And Save Money

The whole concept of insurance revolves around protecting the assets of an individual from financial loss due to an unpredictable event. The reason that we purchase insurance is to protect ourselves from financial disasters. We rely upon the insurance company to take on the risk in exchange for the premiums that we pay. The average consumer spends very little time thinking about insurance purchases. The insurance professional is expected to do most of the thinking for us and advise us on what is best.

There is a simple principle that can be applied to almost all of your property and casualty insurance purchases that will save you premium dollars. Self insuring is that principle. The smart insurance shopper eventually grasps the concept of self insurance. The whole idea around self insurance is using deductible options and eliminating unnecessary coverage. The days of the $100 Collision deductible on auto insurance is fading fast and it should. The higher deductible saves you in premium dollars. That is what we call self insuring. When you change your deductible from $100 to $500 you are taking on the risk for the first $500 of physical damage. You can do the same on the homeowners policy. You will lower your premium and still be covered for any major loss.

You will save a ton of money in the long run. You dont have enough claims over a lifetime to warrant having a low deductible. You are paying the insurance company money for services they may never perform. You will save thousands of dollars by keeping your deductibles $500 or higher.

There are a lot of optional coverages in auto and homeowners insurance that you may want to eliminate to save money. Most states have tort options. Tort is your right to sue. Full tort verses limited tort can sometimes be a difference of 20% in your auto insurance premium. Rental reimbursement and towing benefits are added onto auto insurance all the time. You may want to self insure for these and save premium dollars as well.

The insurance purchase can be easier and more affordable if you can grasp the mindset of self insuring. Your agent will welcome your thinking on this because most agents think self insurance is best for their customers.

Car Insurance How Did They Calculate That?

admin — Wed, 26 May 2010 09:50:06 +0000

Insurance premiums are calculated according to several risk factors. These are the factors identified by the insurance company as most likely to have an impact on the insured against risk occurring. Insurance is a significant cost associated with the item insured and should not be rushed into. It is always a good idea to shop around for the best price available. Insurance premiums will vary considerably from insurer to insurer so do your homework.

Shop Around

Look up the various insurance companies you are interested in and ask them for a quote. They can usually give you a rough estimate fairly quickly and even more exact quotes should also be possible if you provide more details and wait. You should also look up insurers online and get instant quotes from their website. This is a very fast and effective way of shopping around. You will get a good idea of what prices to expect. You can also experiment with the quotation websites to see what effect it makes to your premium price if you select different options. With all insurance policies you will have a number of options that affect the price of the policy.

Therefore you should think about these options and if there are risks that you do not wish to cover then let the insurer know as your premium should become cheaper.

You should also try to make sure you do not double insure. It is a principle of insurance that you cannot benefit from the insured events occurrence. So you cannot get paid twice even if you have two insurance policies. So if a risk is already covered by one policy, again let your insurer know so they can remove it from their calculation.

Factors

Car insurance premiums usually depend on factors such as what kind of car you are driving, how old it is, how big the engine is, what make and model it is? What type of insurance you require also plays a part, do you need only liability, or also comprehensive? What use you will make of the car, for example will you commute to work and how many miles do you plan on driving?

Your driving history will be a strong factor in determining your risk, and linked to this will be the age of the driver, with younger drivers being significantly more at risk of being involved in an accident. If you are young, your sex will also be an important risk factor, however if you are older sex usually becomes less significant.

Home Insurance Rates

admin — Thu, 25 Feb 2010 06:46:39 +0000

Shopping Around

Doubling Up

Location, Location, Location

Home insurance rates depend on factors such as address. If your home is located in an are of high crime, or an area that flood often, or is prone to earthquakes, hurricanes or other significant risks, this will be reflected in the policy price. The security you have installed will also affect the premium you must pay. If you have a sophisticated security system this will obviously make your home safer and this will reduce the risk. Similarly, fire alarm systems and sprinklers can decrease your premium. In some areas, flood prevention measures may be taken into account. The size and value of your home will be another important factor, as clearly a more expensive home will cost more if it is damaged.

Many home insurance policies will require you not to leave the home unoccupied, and if you are renting out the home, this will also affect the premium.

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Cheap Home Owner Insurance – Self Insure And Save Money

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