Freehold, New Jersey
4400 US Hwy 9 S. , Suite 3300
Freehold, NJ 07728
732-972-1771

10 Rules to Follow to Lower Insurance Costs July 26, 2017

Freehold, Monmouth County
10 Rules to Follow to Lower Insurance Costs, Freehold, New Jersey

As we know at NorthEast Insurance Services, insurance can get expensive but we are committed to getting our clients the best insurance policy for the best price. With that level of commitment,  we are always looking for ways to lower your insurance costs but there is also ways, in which, you can lower your costs. Listed below are the ways in which you can take action:

  1. Call your independent insurance agent and investigate different coverage and other product options. There are many privileges of working with an independent insurance agent including that we work with numerous insurers that offer many different products and pricing options. Through this, we have the ability to find you the best products for the best price. You always want to be aware when shopping for insurance that buying a lower priced insurance, you most likely will have a lower coverage insurance policy.

  2. Ask your insurance agent if increasing your deductible now is appropriate for you. Increasing your deductible can save you money on your insurance cost but it’s important to raise your deductible at the right time. It is never a good idea to have the mindset, when buying insurance, “it will never happen to me”. The lack of awareness of post-loss consequences are when most people need insurance coverage and need to make a claim. Higher deductibles can pay for themselves in three to five years, but it could take seven to ten years for some clients and not be a good investment. The recommended time to increase your deductible is during good economic times when you can afford to pay a $1,000-$2,500 loss while growing a deductible fund that can be used when you run into hard economic times.

  3. Consider putting numerous policies through one insurer to get multiple-policy discounts. Placing all or numerous insurance policies with one insurer can give you the opportunity of a discount (Example: placing your homeowners, auto and umbrella policy in the same company). Also, placing all of your insurance policies together makes it less likely that there will be a gap in your coverage. 

  4. Always ask for credits. Most people do not know that they are able to receive credits for alarms, extinguishers, good student driving discounts, etc. Ask your agent for a list of credits that you apply for and that can reasonably cut your insurance costs down. A good example of a credit that you can apply for is if you are laid off from your job or have found a job closer to home; you might very well be eligible for a lower premium. You need to make sure that you are always updating your insurance agent with any changing circumstances.Credits are often the most unaware way to lower insurance costs.

  5. Instead of dropping coverage all together, consider dropping noncritical coverages first. Examples of noncritical coverages are towing, rental reimbursement, etc. Ask your independent agent to assist you in making decisions about what coverage to drop. 

  6. Consider dropping physical damage coverage on your vehicle/s but being considerate about your situation. This is not always the best idea unless you can afford a four to five figure bill for losses. Be mindful that when a vehicle loses value, the physical damage premium generally declines as well. Do not be convinced to drop coverage when the value of your vehicle drops below “X” times the premium. You should always base your decision on what you can afford to pay in case of loss; for example, if your car is totaled in an accident and you can not replace it, how would that affect you financially.

  7. Weigh risk management alternatives to insurance. One way in which you can do so is by placing jewelry in a safety deposit box rather than scheduling it. Overall, it is more risky, but it’s a reasonable consideration. Never cut back on maintenance and loss control procedures that yield long-term benefits like the reduction of frequent losses and those often excluded by insurance policies.

  8. If necessary, consider selling some of your possessions. Would you be able to live without certain vehicles, motorcycles, ATVs, jet skis and boats, homes, jewelry, guns, etc? By selling these items, you can drop the insurance. It is ideal to sell the vehicles and items that are most related to catastrophic events this way your insurance drops significantly, as these items typically cost the most when it comes to insurance. 

  9. Always seek expert advice. Call your independent insurance agent who knows you and your policies well when considering any changes to your insurance. It is never a good idea to use a consumer website or publication that presents generalized, sometimes suspect, advice, nor someone who does not know about your circumstances and also, lacks the training and experience to provide insurance advice. Always work with your agent to seek other professional advice. When getting advice from your attorney or accountant about insurance advice, make sure to also run it by your insurance agent to see what impact it might have on your policy coverage.

  10. Question any advice you get, no matter who it is from! When receiving advice, you want to make sure that the advice fits your needs and YOU. Make sure you assess your risks of loss before making any decisions to reduce or eliminate insurance coverage. Ask yourself many questions about your insurance coverage: What are my exposures? What can I lose? What exposures represent losses I cannot afford? What exposures can I retain? The decisions you make regarding your insurance can mean the difference between economic survival and bankruptcy. Be extremely careful and educated when choosing an insurance representative as they will guide you in making the clearest decisions regarding your insurance.

At NorthEast Insurance Services we can guide you in the right direction of finding the most well fitted insurance policy and coverage for YOU. Don’t settle for just any insurance agent, call NorthEast today at 732-972-1771 x1108.

 

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