Thinking about auto and home insurance generally comes to mind when it’s time to pay the premium or when you need to make a claim. This may be the year to take a serious look at your coverage. Auto premiums experienced a crushing increase in the last year – nationally, the average policy premium increased by 20%. This can really take a bite out of your budget.
Here are some things to consider as you review your policies.
- Group your auto, home, renters, and other property and casualty policies under the same insurance company for savings.
- Increase your collision deductible. To offset this, you can put the savings in an account to build up in case you need to file a claim and pay the deductible. You can increase the comprehensive deductible, but the savings may not justify the change.
- Keep your liability coverage limits high. Carrying the state minimum insurance requirements may leave you holding the bag if you are responsible for an accident. There are many cars on the roads today with a purchase price greater than $75,000, and a stay in the hospital can be very costly.
- Keep uninsured and underinsured motorists’ limits at the same high liability limits as bodily injury and property damage. This will protect you if you have injuries from an accident caused by someone without insurance or who doesn’t carry enough liability insurance to cover your injuries or damage to your property.
- Consider purchasing an umbrella policy for additional liability protection. This policy provides liability protection in addition to your auto and homeowner’s insurance policies. The cost is generally less than your auto or homeowner’s policy premium.
- Finally, if you think you are paying too much, shop around. There is no cost to look at other coverage providers.
Let us know if you have questions about your policy or would like a second opinion regarding your coverage. We can provide you with an unbiased opinion.
