Answers to your insurance questions
The average family spends $1,500 on home and auto insurance.* However, there are several ways you can keep costs down while maintaining adequate coverage.
- Compare coverages and deductibles. Get at least three price quotes before making your decision. An independent agent, who represents multiple companies, can do this in just one visit.
- Increase your deductible. Consumers who are willing to pay more out-of-pocket costs if/when they suffer a loss will pay less in premiums. The amount of money you save on premiums could be significantly more than the extra deductible amount you have to pay. However, you must be able to pay the deductible amount in case of a claim.
- Think twice before buying. Purchasing a sports cars or high-performance motorcycle will likely lead to higher premiums, based on the likelihood of injuries or theft. However, vehicles with good safety ratings and built-in safety features may reduce your rates. Similarly, homes near a fire hydrant with newer electrical, heating and plumbing systems can lead to savings. Potentially dangerous home additions, such as swimming pools, trampolines or certain breeds of dogs, could make insurance more expensive or harder to find.
- Look for discounts. You may be eligible for a discount by purchasing home and auto insurance from the same company. Safety devices, such as air bags or a home burglar alarm, could save you money. Students with good grades or individuals with a strong credit rating may also receive discounts.
Your agent may have additional suggestions for reducing your insurance bill.
*According to the Insurance Information Institute's 2004 statistics.
Cancellation and non-renewal are different. Non-renewal is when your insurance company decides not to renew your policy when your policy period expires. Non-renewal occurs for various reasons, such as if the company stops offering that kind of insurance in your state or area, not necessarily because of something you did. Insurance companies will typically give you a certain number of days' notice and an explanation for canceling or not renewing your policy.
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