Whether you have California auto insurance, California homeowners insurance, or both, if you are thinking of taking action to temporarily lower your insurance costs, you better think twice. If you cut back on your coverage, you are adding to the risk and may expose yourself to higher out-of-pocket expenses in the event of an accident that results in bodily injury or property damage.
In today’s difficult economy, many people are struggling just to be able to pay their regular monthly bills. If you are thinking of raising your deductible or temporarily cancelling some optional insurance in order to save some money on your monthly premium, you could be making a bad decision.
Imagine what would happen if you cut back on your coverage on your automobile insurance and then got in a serious accident. Trying to save $100 or $200 per month can wind up costing you thousands of dollars because of inadequate coverage or high deductibles. Instead of cutting back on insurance, maybe it would be better to give up the premium TV subscription or cut back on some other non-essential expenses.
California homeowner insurance can protect you if your home is damaged by fire, wind, or other forces of nature. Depending on the type of coverage you have, you will be reimbursed for theft, vandalism or other types of contingencies that might occur on your property. Temporarily lowering your insurance costs can wind up costing you a lot of money. If a tree falls through your roof and you do not have coverage, it could cost you thousands to repair.
Why take a chance? If you have a house, you do not want to lose it because you were trying to save a few dollars. As hard as it may be to pay the extra premium amount, it is the responsible and right thing to do.