I'm often asked how to lower the cost of insurance. People are quick to point out that their premiums have gone up every year and they want to know why. I understand and while they don't typically blame me I'm a convenient target for their aggravation. I try to be patient with folks but really I'd like to point out that everything increases in cost and your insurance is in place to protect that ever increasing replacement value.
In other words as the price of auto parts goes up the cost to fix them when the are in an accident will also increase, and like all businesses, the insurance company has to make money or it will go bust. When repair parts and labor costs start going down the insurance company can begin to look at becoming competitive on pricing.
There are only two ways to lower your premium's ... here it is the big secret revealed;
1. Buy less stuff ... if you have 12 cars you are going to pay 12 premiums ... if you have a half million dollar home, you will pay more than the guy with a hundred thousand dollar home.
2. Accept more responsibility for your risk ... we talk about deductibles in the insurance business but really a deductible is just how much are you willing to share in the damage? If you have a zero deductible or a $100 deductible you are telling the insurance company that you will make a lot of little claims. If you set your deductibles at $1000 then they know you are not going to ask for their help until you really need it.
I hope this helps everyone! But I know that rising prices get on our nerves, remember I pay the same insurance rates that you do, so find an agent you trust and have a conversation about the cost verses the benefit. You may decide to down size or at least shoulder more of the cost of a loss.
J
Call me for all your insurance needs.
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