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.
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?
- 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.
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.
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.
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