Insurance Tip of the Week: ASK FOR DISCOUNTS

If you don't ask your carrier for discounts, they may not tell you they are available to you. 

Young And Single? You may pay more for car insurance than your young, married friends (as this Forbes article shows). As you get older, your rates go down naturally because insurance carriers view you as less of a risk. But you don't have to sit around waiting for your next birthday to reduce your premiums. Whether you are married or single, 20 years old or 60 years young, there are plenty of other discounts you may be eligible for. But (and here's the point) you have to ASK.

ASK YOUR AUTO INSURER ABOUT DISCOUNTS. If you don’t ask them about discounts, THEY MAY NOT TELL YOU THEY ARE THERE FOR YOU. Many of you have probably never asked, and assumed you automatically received any discounts you were eligible for. The answer to that is NO.

Common Discounts

If you have been with an auto insurance company for five years accident and ticket free, you are likely eligible for a good driver discount (but again, if you don’t ask, you may not get it). If your carrier won’t offer the discount to you, it may be time to shop around.

If you are not working, or work from home, and don’t drive your vehicle the average amount (typically 10,000 miles a year or more), make sure your insurer knows this and you may get a discount for low annual mileage. Same goes for keeping your vehicle in a garage, versus parked on the street.

These days, every dollar counts—so check ask about discounts, and see how much you could save, based on things like:

 > Vehicle Equipment (airbags, anti-theft system, daytime running lights, etc.)

 > Driving History & Habits

 > Driver's Education

 > Driver Affiliations (military, federal employee, memberships)

 > Customer Loyalty (multi-car, multi-policy)

Bundling your auto and home insurance policies can help, but sometimes not as much as you think, so the best answer to a better policy rate is this: SHOP AROUND, and when you find a policy that aligns with your coverage needs and your budget, get a letter from your carrier for your homeowners policy, auto policy, etc. that LOCKS IN that deductible for a set period. This is smart because often if an area, for example, has several storms causing extreme damage, their deductible or premium (or both) may automatically be increased to account for the increased risk to the insurer, without a big fancy invitation alerting you to these changes. Many of us are guilty of not reading the fine print. So, CHECK ON YOUR POLICY YEARLY. Do an annual review. Ask questions. Ask for discounts. And if you need help, give us a call.

303-834-1001

NEW! Ask Us Anything: What you need to know about Cam Newton's car accident

(Todd Sumlin/AP/The Charlotte Observer)

Last month, we rolled out an Ask Us Anything column in our newsletter, so that you can send us your insurance "what ifs" and "how abouts," and we'll respond with advice and recommendations on how you can save money and protect all of your most important stuff…. All without having to ask your insurance carrier (who may note even hypothetical questions in your file. We know - sneaky!).

The first question is:  The news about  Cam Newton's car accident made me wonder what the repercussions will be for the driver who hit him. Were I to cause an accident and injure someone, famous or not, can you tell me the policy limits and coverage that I should have to protect me against injury, damage to vehicle, etc.

Our answer:  There’s really no short sweet answer to how much coverage a person should purchase. Some professionals will recommend analyzing your assets and purchasing liability limits that are of a similar value. I believe it is more complicated than that. The Cam Newton accident is a great example as to why. If the driver of this vehicle were found “At-Fault” and liable for the damages he caused, and Cam had been paralyzed (or just simply unable to perform his job any longer due to the accident), the at-fault individual would have been liable for millions of dollars. 

....Let’s see, Cam is 25 years old. In July 2011, NBC Sports posted that Cam Newton was signed to a $22 Million deal, meaning that's his market worth. That's a whole lot of money! Again, if the individual who caused the accident and injury had been found at-fault, and had he ended Newton’s career, he’d be bankrupt. Even if Cam only had to miss a few games, if those injuries cost the driver the salary Cam gets paid per game, that’s still a lot of money. In this case, both parties were lucky, with Cam being released from the hospital with only minor injuries. But it's best to protect yourself against any of these scenarios.

I’m of the belief and hope that it is rare for an insured person to sideline the career or someone like Cam Newton, Peyton Manning, or worse yet, Russell Wilson. That said, the insurance we purchase is there to protect us -- not only from everyone else on the road, but from ourselves and damages we may cause as well. 

So, back to the question at hand: how much coverage is the right amount of coverage?  This is a risk tolerance and a cost analysis question that needs to be answered. What is your net worth, how much “risk” do you want to assume, and how much do you want to pay for the “risk transfer” (insurance jargon - blah!). The bottom line is, it’s a personal preference, and one that takes some thoughtful consideration. The majority of insurance buyers out there will spend 10 times longer determining how to get the most bang for their buck shopping for their next 65” curved LED TV than considering their coverage options. (Check this one out. Pretty sweet. I found that in 4.58 seconds…. BTW, did you know that’s Cam’s 40 yard dash time?)  ;o)

I hope this is somewhat helpful. For further clarification or help determining your personal net worth and the amount of risk you are able to assume vs. transfer to your insurance policy, give me a call. 

 

Have a question yourself? Send us your insurance questions and we’ll share our advice.

Understanding and controlling business auto costs

It’s easy to understand why prices rise for manufactured or commodity-based products. When prices for raw materials increase, the cost of the product goes up. It’s not as easy to understand the cause of higher prices in a service-based industry such as insurance. Many factors can affect the cost of insuring a business vehicle.

What can you do to hold down your auto insurance premiums?  
Read more of this post

by Mark Rose for The Cincinnati Insurance Companies