In today's tough economic climate, we are all looking for ways to trim the fat in our household budgets. Unlike Washington politicians that believe they could spend their way out of debt, real people, especially business owners, understand that if your expenses are exceeding your income, you either have to produce more income or cut back on your expenses.
Many of us have already found creative ways to cut back on our expenses. Cutting back insurance coverage however may not prove to be a financially sound decision. It is extremely important, that before you cut back on your insurance coverage that you talk to an agent that cares enough to go over your policy coverage with you, so that you understand how each coverage protects you. Premiums are based on the risk the insurer takes. You may be willing to assume some of that risk yourself in terms of lower coverage or higher deductibles. The more risk you are willing to take, the less your premiums will be.You may want to consider talking to a financial advisor, before eliminating coverage completely.
It is also important that you stay in contact with your agent. Insurance companies are constantly changing their underwriting guidelines, which in turn affect their rating factors. You may also have had a couple of little 'blips' in your driving record, which caused an increase in your premium. Just because your agent found a competative quote with the company you are currently with, doesn't mean that they are still the most competative, especially if there were changes made during your policy period. Changes such as adding teenagers to your policy,(some companies are more family freindly than others), or adding more expensive or higher risk vehicles to your policy.
Talk to your agent at renewal time and ask if they can requote you with other companies to make sure you are getting the best premium. Make sure, however that before you just "jump ship" for a lower premium, that you consider the companies financial stability and claim paying experience. Your agent should know about the companies they represent, but the Internet has a wealth of information at your fingertips.
At Safeguard Insurance Group, we strive to educate our clients and always present them with the best alternatives to properly protect their assets and still save money in the process.
Livio Gasparini
Owner/Agent