We all love to save money. But there is a time when saving money initially is just not a value in the long run. If you have decided to get auto or homeowners insurance quotes from other insurance companies, ask yourself the following:
Did I give up coverage to save money?
Did I have to choose higher deductibles?
Did I reduce coverage?
Insurance protects you against risk. To ensure you are making informed decisions speak with a licensed agent to review coverages and potential scenarios.
Here are some examples of saving money, but not having the right protection.
If you have liability limits on your auto policy of 100/300 and you are told you can save money by lowering limits to 25/50…think twice. If you own a home and you are sued you put yourself at risk in a lawsuit. The general rule is to have limits up to and including your assets. And if your assets are great, consider an umbrella policy.
Another area where consumers cut corners on auto insurance where they shouldn’t is dropping collision coverage too soon. Although you paid off your auto loan and are no longer required by a bank to have collision coverage on your vehicle, your car may still have significant value. If you have a total loss and the accident is your fault you will not receive any money for the loss.
If you increase your comprehensive coverage and live in the suburbs you are at a greater risk for hitting a deer or incurring damage from fallen trees. Your comprehensive deductible would have to be applied first to repair any damage to your vehicle from the event. Glass claims are also covered by your comprehensive coverage, so if you get a crack in your windshield you will have to pay the comprehensive deductible prior to glass repair, which can be costly. Even if an agent suggests increasing comprehensive deductibles it is not advisable for someone living in the suburbs.
Before you drop or reduce any coverages speak to your agent to make an informed decision. Some of the coverages people tend to opt out of are towing, rental and roadside assistance. These coverages are at times very economical and most often utilized.
When it comes to homeowners insurance there are agents that may steer you towards an HO1 policy when you currently have an HO3 policy in order to show a savings to get your business. But what they don’t point out is that an HO1 policy does not cover pipe breaks or roof leaks. Considering the harsh winters we had last year, both are very important coverages to maintain.
The best approach is to choose coverages and deductibles based on your situation, then shop for rates and companies. Insurance companies all rate differently. A local independent agent is very knowledgeable about the companies they represent and can find the right company for you. They can also make sure you are getting all relevant discounts in which you are entitled.
When getting competitive insurance quotes, do your research and find an independent agent that you can trust. Referrals and reputation within the community are the best ways to ensure you are working with a reputable agency. Freedom Insurance Group is a Trusted Choice Agent. Trusted Choice agents share a common commitment to serving their customers.