Week 22: Reduce Expenses, Tactic 6

What can you do this week?

• Review the below tactics and discounts that may help you reduce cost.

• Work with an independent agent like Dan Luigs to evaluate your options.

To learn more about comprehensive planning or coaching engagements available, checkout my website and schedule a call.

Insurance Serves a Purpose

• Consumers are skeptical creatures.

• Some even call insurance a scam.

• The importance of insurance however cannot be minimized.

• Insurance continues to help millions avoid potential financial ruin in the event of a catastrophe in the areas of life, health, property, and more.

• While some may feel their premiums paid are money wasted, the true value of coverage reveals itself when it’s needed most.

  

Ask The Expert

• There are many forms of insurance covering many risks.

• The focus of this post is home and auto insurance and how to reduce costs yet do it responsibly.

• I asked Dan Luigs of Insurance Store, Inc. for his tips.

• Insurance Store, Inc. is an independent insurance agency which really matters.

• The objectivity to shop a variety of companies and available coverages make an independent vs. captive agent a powerful ally.

  

Raise Your Deductible

• “Consider Higher Deductibles. This will help save some money on your policy.”

• Below is an illustrative example regarding auto insurance.

  

Bundle Coverages

• “These days many companies won’t write a home only or an auto only insurance policy. By bundling home and auto insurance, you’ll be able to get more companies competing for your business.

• Bundle your Auto and Home for more discounts and more stable pricing. Bundled/Packaged policies most always include better coverage and benefits and the cost savings is usually 10-15% (or more) on each policy. Many business risks can also bundle options.”

  

Telematic Discount Programs

• “Safe Driving Telematic Programs. Telematics can reward you by giving you a discount for good driving.”

  

Consider Tenure

• “Consider tenure -some carriers won’t take you as a new client if you have less than two years with a carrier.”

  

Don’t Change Carriers Too Often

• “Jumping companies too often will hurt you in the long run.”

  

Never Let Coverage Lapse

• “DO NOT let your policy cancel or lapse for any reason. Carriers are not reinstating coverage as easily as they once did. If it does cancel, they may require premium in full before reinstating. This is across the board for every line of coverage.”

  

Choose Claims Wisely

• “Absorb small claims when you're able, and save coverage for catastrophic losses. Talk with your agent and let them claims counsel you should a loss happen. Stop using your towing or roadside assistance as a maintenance policy. Frequency of claims REALLY matters. A lot..”

  

More Tickets, More Risk, More Premiums

• “Follow the laws so you don’t get any tickets. Those tickets really add rate to your policy and stay on your record 3-5 years, depending on the carrier.”

  

Shop Discount Programs

• “Discount Reviews - make sure you're getting everything you're entitled to. Every carrier has different discount opportunities. Make sure you go over those with your agent.”

  

Keep Agent Expectations Realistic

• “Please remember that we are agents for the carriers. We don’t make the rules, we don’t have control over the rates and we don’t make the decision if your policy is cancelled by the carriers. We are here to help educate, make sure you have the best insurance for your situation, manage your account with the carrier, and claims counsel when needed. We are doing our best to manage carrier changes with client needs.”

  

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