Three Insurance Policy Discounts Which Can Save You Money, Part One

Betcha Never Knew About These Three Insurance Policy Discounts

“Bundling and saving”, is not the only method to save money on your home and automobile insurance policy. There’s a better way to realize massive insurance policy discounts.

Generating insurance policy discounts using shears to cut insurance costs
Use insurance policy discounts to cut your home and automobile insurance costs!

Improve your Insurance Credit Score. Not A Discount, But It Will Still Save Your Money

This is the easiest way in the world to lower your home and auto premiums. Companies place you in excellent, good, fair, poor, and ‘forget about it’ pricing tiers. So, if you begin with a poor score, do all you can to pay bills on time, lower your credit utilization, and give the five (5) major insurance credit score no-no’s a chance to come off your credit record.

What are these five (5) no-nos?

  • Judgments
  • Foreclosures
  • Repossessions
  • Liens
  • Bankruptcies, or going into or coming out of a bankruptcy

    Don’t forget, these no-nos will affect your insurance credit score for Five (5) years.

    Hey, five and five. How about that?

Now, on to the three insurance policy discounts.

How Much Can These Three Insurance Policy Discounts Save You?

Based on your insurance company, you can actually save up to 40% on your annual homeowners’ insurance premium. So, imagine your annual premium is $2000. Using these three insurance policy discounts could help you realize an annual savings of $800. And that is not chicken feed.

Fire Extinguishers, Smoke and Carbon Monoxide Detectors, Deadbolt Locks 

Some companies give you an immediate five percent (5%) discount when you keep functioning fire extinguishers, smoke and carbon monoxide detectors, and deadbolt locks. Fire extinguishers and smoke and carbon monoxide detectors are required in many cities. So, you actually benefit from obeying the law.

Alarm Systems

You can realize additional discounts up to 20% of your annual premium by installing a central-station monitored alarm system. It’s like getting paid to protect yourself and your loved ones.

Claim-Free Discounts

I’ve always questioned the sanity of people who say, “I’ve been paying this policy for ten years and never put in a claim. I think it is time for me to put in a claim and get some of my money back!”

Okay, first off, you’ve just informed your agent you intend to commit fraud. So, when you go to trial, I will testify against you. Purposely screw up my great loss ratio? I don’t think so.

Better you should just maintain your home to prevent losses and get a part-time job to supplement your income. Why? Because many insurance companies offer what is called a”Claim Free Discount” when you don’t have claims. 

How Much Can A Claim Free Discount Save Me?

One of the insurance companies I work with as an independent insurance agent offers an annual Claims Free Discount of ten percent (10%).

Let’s imagine your annual homeowners’ insurance premium is $2000 at this years’ renewal. With just a Claims Free Discount, you would automatically qualify for the ten percent (10%) discount of $200. Now your annual premium drops to $1800.

What Should You Do With All The Money You Save With These Three Insurance Policy Discounts?

I learned long ago what you earn isn’t as important as how you use what you earn. So, you’ve perhaps saved up to 40% of your annual homeowners’ premium. You can choose to use the money for a new bag, a vacation, or a fabulous pair of shoes. Or, you can use your savings to enhance your insurance portfolio. You can purchase additional

  • life insurance to pay your mortgage or rent should you die;
  • disability insurance to provide an income when you are too sick or injured to work;
  • long term care insurance to get skilled nursing care not covered in your health insurance policy. And, it will also to protect your home from Medicaid’s dreaded, “Five Year Lookback.”;
  • increase your automobile insurance; and
  • add a Personal Umbrella Liability policy for greater protection from lawsuits.

My next post will cover other insurance policy discounts. 

 


About the author

Eustace L. Greaves, Jr., LUTCF is an NYS-licensed Independent Insurance Agent and Broker with over 38 years of experience. He is celebrating 25 years as an Independent Insurance Agency Owner.

Like to speak with Eustace?

Eustace is ready to assist you with your life, disability, home, flood, renters, auto, cooperative and condominium, and wedding insurance needs. He can be reached at 718-783-2722, or by email at eustace@insuremeeg.com. You can also contact him by going to his website, https://greavesinsurance.com, and completing any of the available “Contact Us” forms.

How to subscribe to his newsletter

If you’d like to subscribe to his monthly newsletter, “Health, Safety, and Good News You Can Use,” go to his website, https://greavesinsurance.com, and click on any of the “Subscribe” buttons.

Have insurance, income tax, real estate, mortgage, or home inspection questions for Eustace? He’ll be happy to provide the insurance and income tax answers and will continue to call on his expert contacts for help in the other areas. Just email him at eustace@insuremeeg.com with the subject line, “Ask Eustace.”

Automobile Insurance Policy Danger In The Details

automobile insurance policy
Good auto insurance is hard to beat!

Automobile Insurance Policy Details Are Fraught With Danger

I enjoyed a great conversation with a nice gentleman the other day. He’d been referred to me for an automobile insurance policy. He readily admitted his last automobile insurance company dropped him back on July 1, 2020, for having two (2) “incidences” during the past three (3) years.

He tried, without success,  to acquire new coverage for two (2) months prior to his prior company’s non-renewal date. After many tries, he simply couldn’t understand why no one would take him up as his one accident was not-at-fault and the other incident, a moving violation, resulted only in a ticket, no points.

I ran him through one of my preferred companies and discovered why no one wanted to take him.

How Automobile Insurance Policy Owners Put Themselves In Danger

 

Auto and home insurance are analogous to term life insurance. Basically your coverage, unlike whole or permanent life insurance, runs out after a certain number of years. If your policy allows the coverage to continue, the premium skyrockets to an amount that becomes untenable to maintain. So you wind up losing your “cheap” insurance, usually at the same time it is most important for your family’s financial well being.

In New York State, auto and home insurance companies write you policies with a term of three (3) years. So, if you maintain a good auto driving record, for example, renewal is a no-brainer. Too many “incidences” though, and renewal may come at a hefty price, or not at all.

So. several years ago you called one of those over-the-phone, direct-to-a licensed advisor automobile insurance companies and got a terrific rate.

You just weren’t aware it could have even been better.

You didn’t know your new policy contained a ticking time bomb.

So you contacted your independent agent or broker who’d been through hell, high water, and even a couple of claims with you, canceled your current policies, and moved to your new company.

Which Rating Factors Matter Most To Automobile Insurance Companies When You Want To Move Your Policy?

How long you’ve been licensed.

Your gender and age.

Your insurance credit score.

How many current moving violations (with some companies, during a period of as many as five (5) years) are on your record when you apply.

Policy lapses for non-payment of premium.

License suspension or revocation.

The length of time you were without auto insurance. Nowadays, the lack of a personally owned auto insurance policy for more than 30 days even if you didn’t actually own a vehicle, will disqualify you from getting insurance from many companies. 1

And Finally, The One Factor Most Consumers Know Nothing About

Few, if any, of the major preferred companies take new business coming from indemnity or non-standard insurance companies.  

And that is where your company placed your coverage. Its indemnity or non-standard insurance company. The nice person on the phone never suggested you could request quotes for their Preferred or Standard companies. Or, even if you didn’t qualify for those companies now, you weren’t advised to try again in six (6) or twelve (12) months.

For this reason, you’re basically stuck with your automobile insurance company.

Your Policy Is Emblazoned With An Automobile Insurance Scarlet Letter

 

For this reason, and this reason alone, I couldn’t offer this gentleman a quote from any of my preferred companies. So, I took the only choice open to me. I gave him a quote from the New York Automobile Insurance Plan (NYAIP).  In many cases, the NYAIP is the last resort for those needing automobile insurance. 

The NYAIP quote? Close to $6,295 for one year, about $4,500 more than the quote I would have been able to get him from one of my preferred companies.

I called him back.

Told him the quote.

He said, “Forget it,” and hung up.

Why Do Some Automobile Insurance Companies Engage In These Practices?

Short answer? Got me. 

For many companies, the name of the game is increasing market share, no matter the immediate cost. So, if your profile permits, you will be placed into their Indemnity or Non-Standard company, offering you a competitive, lower premium just to get your business. Then as claims from other drivers in your Indemnity company roll in, your premium begins to increase. This increase will be imperceptible at first. Then one day, you will open your renewal envelope and receive the shock of your life. 

Even if your record is perfectly clean, when you begin calling other insurance companies to secure a lower-cost automobile insurance policy, your current indemnity policy status will prevent you from doing so.

What You Should Do Today

Find your automobile insurance policy and call the insurance company or agent. Ask whether you are in an Indemnity or Non-Standard automobile insurance company. If you are, request they requote your policy for either their preferred or standard company.

Now, when you want to switch companies, it won’t be the type of company preventing you from moving your coverage.


Notes:

1. In my previous post “8 Tips To Save Money On Your Automobile Insurance, (https://brooklyncovered.com/8-tips-to-save-money-on-your-automobile-insurance/)”,  I wrote about the good old days when most auto insurance companies allowed you to go from one to up to three years owning a personal auto insurance policy without extra premiums or flat-out rejection. Some companies didn’t even factor in the lack of automobile insurance, as long as you didn’t own a car in your own name. In either case,  I suggested the purchase of a monthly zip car membership where your membership automatically provided you with liability insurance coverage. This removed the necessity of maintaining a non-owned auto insurance policy. Thus, when you decided to purchase your own vehicle, the money you’d spent on the zip car membership:

Wound up saving you money on your new auto insurance policy as you’d been continuously insured, and,

Enabled you to qualify for a better or preferred company in an insurance company’s member companies. 


Eustace L. Greaves, Jr., LUTCF is an NYS-licensed Independent Insurance Agent and Broker with over 38 years of experience. Eustace is ready to assist you with your life, disability, home, flood, renters, auto, cooperative and condominium, and wedding insurance needs, and can be reached at 718-783-2722, or by email at eustace@insuremeeg.com. You can also contact him by going to his website and completing any of the available “Contact Us” forms.

If you’d like to subscribe to his monthly newsletter, “Health, Safety, and Good News You Can Use,” go to his website, https://greavesinsurance.com, and click on any of the “Subscribe” buttons.

Have insurance, income tax, real estate, mortgage, or home inspection questions for Eustace? He’ll be happy to provide the insurance and income tax answers and will continue to call on his expert contacts for help in the other areas. Just send him an email to eustace@insuremeeg.com with the subject line, “Ask Eustace.”

Let’s Set The Record Straight About – Customizing Your Insurance

Today’s clever insurance commercials are a necessary evil. They provide more information about bundling and saving, and less about the coverages you, your family, and your business really need.

We can change that by simply asking the right questions.

Customizing Your Insurance

There is no insurance company that owns a monopoly on helping you customize your insurance.

None.

Commercials, Commercials, Commercials

Commercials are designed to increase brand awareness using gimmicks including celebrity spokespersons, animals, car crashes and chases, and well, anything they think you will remember when it is time to buy insurance.

Does Every Company Allow You To Customize Your Insurance?

You can customize your home, life, auto, renters, co-op, condo, disability, long term care, personal umbrella, and yes, even your flood insurance with any company licensed to do business in the State of New York as well as every other state in the Union.

Every company gives you the ability to customize your insurance.

Every single one.

Problem is, most consumers aren’t served by most of the television commercials aired today.

They are simply goaded into a perpetual state of dissatisfaction with their current carrier, even when their current carrier is doing a good job for them.

It’s What Consumers Don’t Know About Their Insurance Which Hurts Them

Each year, I make at least 25 insurance-based presentations for HUD-approved housing agencies and organizations such as Neighborhood Housing Services of New York City, Harlem Churches for Community Improvement, and Impacct. I always ask those in attendance to tell me what their automobile insurance coverages are. Inevitably, 14 out of 15 give the same answer, “Full Coverage.”

Not 25/50/10.

Not 250/500/100.

Full coverage.

And when I ask them how much their policies cover in the event of an accident, they usually reply that they’re not really sure, but they did save money by bundling their home and auto.

Yay,

Buying What You Need Is A Two-Edged Sword

As long as the policy or policies quoted for you meet your state’s required minimum coverages limits, buying the cheapest policy or bundle possible is actually all you need.

What if though, you just struck and killed a pedestrian, or lost control of your vehicle and totaled a house. Will your policy provide you with the actual amount of money you will need when the jury hands down some obscenely massive award against you?

Imagine coming home to find;

  • Your home on fire.
  • Two (2) feet of toxic sewage water sloshing about your finished basement.
  • Burglars paid you an expensive visit while you are at work or the market.
  • Your good dog had a bad day.
  • There are three feet of floodwater in your home and you don’t own a flood insurance policy.

What Questions Should I Ask?

  • What, if any hoops must I jump through in case of a claim?
  • Are policy coverages or exceptions more important to know?
  • Why do I have duties after a loss?
  • In the event of a covered cause of loss, how easily will my claim be settled?
  • Is your claim service fair?


What Should My Insurance Company and/or Independent Agent and Broker teach Me?

  • Why buying home insurance based on your home’s replacement cost is essential.
  • How to determine your condominium and cooperative apartment “walls in” insurance coverage based on what a licensed contractor would charge to completely repair fire or water damaged walls, ceilings, and floors.
  • The importance for renters to complete a personal home inventory, down to the last sweat sock.
  • How owning Life and Disability insurance will prevent financial disaster should death or disability destroy the earning power of a family breadwinner.
  • Reasons why every property policy should include Water and Sewer Backup coverage. And why every cooperative and condominium apartment owner should add the Loss Assessment endorsement to their coverage.
  • Why buying flood insurance, even when their home is not in a high-risk flood zone, is a smart financial move.

And, of course, what coverages do I actually need to protect my family and home from most disasters?

The other day a woman asked me for my honest opinion of who I felt was the best insurance company out there.

My answer?

The one with whom you secured the proper policies, with sufficient coverages, which is in force at the time of your claim.

A company that won’t make you jump through hoops to settle a  claim fairly. An independent insurance agent and broker willing and able to service your policies. With premiums accurately reflecting the coverages your policies provide.

Nothing else matters.

As for the commercials, well, give my regards to Broadway.

At least until we can enjoy live theater again. Until then, stay healthy and safe.

 

Eustace L. Greaves, Jr., LUTCF is an independent insurance agent and broker, licensed to conduct business in New York State. Contact Eustace at 718-783-2722, 718-489-2218, by email at eustace@insuremeeg.com or by completing the contact form on this page, or  one of the many contact forms on his website, https://greavesinsurance.com.

 

 

Automobile Insurance Quote

Be honest and tell the tell the quoting broker or clerk if there are other drivers in your household, whether or not they will driving your car, or own their own cars. There are few things worse than being caught in a lie when looking for auto insurance.

Put The Car Behind The Automobile Insurance Quote.

Thinking about calling some insurance agencies for an automobile insurance quote? Looking for better coverage for your dollar, a less-expensive policy, or some combination of both?

Then do yourself and every broker or clerk you speak to a tremendous favor and prepare certain information before you make your first call for an automobile insurance quote.

Basic Information You’ll Need For Your Quote

  1. Your driver license because the broker will need the license number to order your motor vehicle record.  Yes, people do call for an automobile insurance quote and can’t find their driver license. What would they do if the police pulled them over and said “License, insurance card and registration”?
  2. Your date of birth.
  3. Your social security number.
  4. The age you were first licensed. 1
  5. The year you were first licensed. 1
  6. Has you driver license even been suspended or revoked for cause?
  7. Have you ever completed a Defensive Driving course? If so, what was the date you completed the course. 2
  8. The Vehicle Identification Number (s) of any vehicle you want to insure.
  9. Your vehicle’s year, make, and model.
  10. The cost of your vehicle when it was new.
  11. How the car or truck will be driven. In other words, will it be pleasure only, used for a short or a long commute to work, or will it be used in the course of your business?
  12. Your current address. If you haven’t lived at your current address for at least three (3) years, what was you last address, and how long did you live there?
  13. The name, policy number, and length of time you’ve been insured by your current auto insurer, and any other automobile insurance company you’ve been insured by in the last five (5) years.
  14. How many, if any, no-fault losses have you had in the past five (5) years? If any, when did they occur, and how much was paid for each claim? 1
  15. How many moving violations?
  16. How many accidents in the last five (5) years? How many were definitely your fault? 1
  17. When did they occur? 1
  18. How many points on your license? 1

Honesty Counts

Above all else, be honest. Tell the quoting broker or clerk if there are other drivers in your household, whether or not they will driving your car, or own their own cars and carry their own insurance. There are few things worse than being caught in a lie when looking for auto insurance.

For example, I recently tried to work with a young lady who, when our conversation began, confirmed she lived alone. There were no other people in her household.

This young lady then told me she had two (2) vehicles to insure. To insurance agents and brokers this is a sure danger sign, especially for someone who’d never had an automobile insurance policy before. So, I asked her whether she would be driving both vehicles, or would someone else drive the second vehicle. She said her husband would be driving the second vehicle. So, when I asked her if she and her husband lived together, she seemed slightly put off, telling me that of course she, her husband and their children lived together.

I asked why she didn’t provide this information when I first requested it and she admitted that a family member told her not to as this should get her a lower rate.

He must have some driving record. Little wonder why automobile insurance premiums are so high, especially here in Brooklyn and Queens.

Best of luck with your search.

References:

1   All of this information can be found on your driving record, or driving abstract. To avoid a trip to their local DMV office, New York State licensees can go to the New York State Department of Motor Vehicles website, http://dmv.ny.gov.

  1. Click on “Top Online Services” under the heading, “Driver Licenses.”
  2. Click on “Get My Driving Record.”

You can order your abstract either through the mail using the MV-15 form for $10.00, or get it online for the fee of $7.00. You will have to create a “MyDMV” account to this.

Of course,  you can always get a copy of your driver license by simply going to your  local DMV office.

2 Defensive Driving courses provide automobile insurance premium discounts and driver license point reduction which last for three (3) years from the course date.

For 33 years, and since October 20, 1995 when he opened his own financial services agency, Eustace L. Greaves, Jr., LUTCF has enjoyed providing his clients with the personal lines insurance coverages, income tax services, and defensive driving workshops they need to better their financial lives. 

Call him at 718-783-2722, or email him Eustace@insuremeeg.com for a competitive quote for your life, home, flood, disability, renters, coop, condo, long-term care, and automobile insurance, personal income tax preparation services, or the date of his next defensive driving class. 

Bundle Insurance Coverages, Or Else | Brooklyn Covered

According to a recent article in The Insurance Journal, a major insurance company announced plans to drop their North Carolina homeowers insurance clients who didn’t bundle, or combine, their automobile insurance policy with the same company. As many as 45,000 homeowners insurance customers were due to be non-renewed unless they bundled insurance coverages for their home and automobile insurance from this carrier by December 15, 2011.

Bundle Insurance Coverages, Or Else

According to a recent article in The Insurance Journal, a major insurance company announced plans to drop their North Carolina homeowners insurance clients who didn’t bundle, or combine, their automobile insurance policy with the same company. As many as 45,000 homeowners insurance customers were due to be non-renewed unless they bundled insurance coverages for their home and automobile insurance from this carrier by December 15, 2011.

The company doesn’t plan to simply let these former policyholders fend for themselves. They’ve already made arrangements with other companies to provide these former policyholders with coverage.

Let’s look at the positives of bundling insurance coverages.

  1. Bundling insurance coverages saves money. When you place one or more policies with the same company, you can qualify for what’s known as a multi-policy discount. This discount, depending on the company, can range from 5% to 15% on each policy you have with the same company.
  2. Bundling makes it easier to keep up with all your coverages. Now you won’t have to call two (2) or more agent or servicing companies to stay on top of your insurance. 
  3. Purchasing Umbrella Insurance. Adding an Umbrella Liability policy to your insurance portfolio is a cost-effective method of protecting your property from loss in case of a liability claim against you. To qualify to buy this coverage, many companies now require you to have both your auto and homeowners coverage with them. One reason for this is to guarantee the insured continually carries certain minimum personal liability amounts on each policy. And, the company knows immediately if either policy lapses, which could invalidate the umbrella policy coverage.

While there are positives, this “Forced-Bundling,” (sounds a bit like force-placed homeowners insurance doesn’t it?) does raise several critical questions. 

  1. What is their financial relationship with these other companies? Are they truly separate entities, or will they be some type of wholly owned subsidiary?
  2. How will this company compensate its agents for the loss of income they stand to face? Imagine an agent losing 50 – 250 clients in one fell swoop. This will create a huge loss of income during difficult economic times.
  3. Will they allow their agents to become licensed agents for these other insurance companies, or will that ability only be offered to  preferred agencies? Even if they allow all of their agents to seek agency contracts with the new companies, will those companies only offer agency contracts to the best and/or largest agencies?
  4. How will these same agents deal with the loss of community confidence and good will? People tend not to like being dictated to, and the easiest person to whom they can voice their displeasure is their local agent. And, they’ll vote with their feet, wallets and pocketbooks.
  5. How does the underwriting and claims handling ability of the  new companies compare with that of the original company?
  6. What if you’re paying less for your automobile insurance at another company, even while taking the multi-policy discount into effect? Why should you be forced to pay more than what you’re paying now with another carrier?
  7. Let’s suppose you have terrible credit and/or a lousy driving record. You may not even meet the basic underwriting criteria for any of this company’s auto insurance companies. What will happen then?

This situation will anger many, and that’s understandable. One of my clients claimed it was akin to being held up at gunpoint in a dark alley with the criminal telling you, “You’d better give me some money or I’m going to shoot you.”

And just your luck, you’re wearing your jogging shorts.

The ones without the pockets.

 I’ll let you know how this works out for all parties concerned.