If you’re like the rest of us, you don’t want to pay a penny more on your home insurance rates than you have to. And with so many low rates being advertised in the media nowadays, it can be tempting to simply choose the lowest rate you can find. However, it’s important to understand that there’s more to choosing great coverage than simply selecting the most affordable home insurance out there.
Low Rates Might Not Offer Adequate Coverage
Though some insurance companies offer special deals and discounts that are usually valid for six to 12 months and do offer good coverage, there are always companies that offer extremely low rates for an unlimited period of time. But often times, even if the coverage amounts are adequate, you’ll find that the companies are lacking in other ways or sometimes are just plain scams. For instance, there are fraudulent companies that never pay out claims. Others don’t send out agents when you need them, and leave you waiting for your money for weeks. And in the event of a claim, that’s the last thing you need.
Finding Reliable and Affordable Home Insurance
The bottom line is, when you’re shopping for affordable home insurance, don’t simply choose the policy with the lowest rates. Find out exactly what types of damages are covered and for how much, and read the fine print to see if the low rates are a special offer that comes with specific conditions. Go online and do a search on the insurance company to see what other consumers say about it, and check with the Better Business Bureau to find out how the company is rated and whether there are any complaints about it.
Have you ever verified over choosing a deductible on your car insurance or home insurance has made any effect on your premiums ? Let deductibles not be overlooked. They do provide a significant premium savings and benefit you over a period of time. Deductible is that amount of money paid by the insured party much before an insurance company’s coverage plan has begun it’s work. More the deductible, lesser will be your premium and vice verse. Deductible is considered in order to lower any insurance company’s risk level and intact legislate insurance policy holder’s premium. Common denominations for deductibles include $50, $100, $500, $750, $1,000, and $1,500.
For and Against of Deductibles
Adjusting your deductibles on higher note will show a considerable drop in your annual premium. Another factor certainly militates that the frequency of accidents occurring or claims made is not too high, this favors in paying higher deductible. On the other hand, the premiums you pay are absolutely in reach to maintain the coverage. It makes sense to take a financial risk with your insurance deductible.
Contrarily, If you found to be not secured and well equipped financially then setting a higher deductible can be disastrous when any accident or collision occurs. The savings made by choosing high deductibles over your premiums may be lost and even more. If you fail to pay for your deductibles then you may loose out on your asset until you come up with the money.
A Sound Decision
It is important that you review the deductible options you have chosen on your home or car insurance policies. It’s common for any insurance company to provide minimal discounts on your policies if made no claims, or very few claims. Choosing a higher deductible means you might pay for the smaller claims out of your own pocket, but you also get to keep the claims free discount on your policy. It is always best to have a check on your monthly budget and savings and then opt for a higher deductible. If you are not sound financially, its better to lower your deductible to protect yourself in the future.
If you have been with your current insurance provider for a long period of time, then it is possible that you are paying too much for insurance. Whether it is car insurance or home insurance, there are ways to keep your premiums low.
Shop around with other carriers to find out what their rates are like. Insurance carriers are always on the lookout for new policy holders. To get quotes simply call or send in your current coverage’s and have the quoting agent figure out what it will cost each policy term. Just make sure that the coverage’s are the same.
When switching insurance carriers, make sure to ask for a future effective date. Providers will often discount rates if they can issue the policy at least two weeks into the future. Just make sure that there will not be a lapse between policies as this can actually make your rates go up.
Bundle policies together in what is called a multi-policy discount. Most major carriers desire to have all the risks of a household insured by one company so they will offer discounts for bundling policies. The most common is the auto and home discount but don’t forget to ask about multi-policy discounts for boat and motorcycle insurance policies.
If you work for a company that offers benefits to their employees then check to see if they offer auto and home insurance.
Many times they will offer this benefit with the option of payroll deduction which usually saves 10-15% off the premium of most policies.
One discount that is often overlooked is the military discount. Service men and woman simply have to ask for the discount and provide documentation of service to have this discount applied.