Raise Your Deductible
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Some companies offer a 25% discount on home insurance by
increasing your deductible (the amount you, the insured, would
pay in the event of a loss) from $500.00 to $1,000.00. Figure
out how many claims you've had in the past 10 years and compare
that to a 25% savings each year you paid on your home insurance.
Also save yourself approximately 13% on your collision coverage
for your auto by increasing your deductible to $500.00 from
$250.00.
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Consider Deleting Glass Coverage on your
Auto |
Glass Coverage for most new vehicles runs around $110.00
- $150.00/year. Considering you pay a $100.00 deductible and
most North American model windshields cost around $250.00
- $300.00; it doesn't make much sense to insure the glass.
Even with the 13-D endorsement (deleting glass coverage) your
side and back windows are still covered in the event of attempted
theft.
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| Does Your Vehicle Require Collision
Coverage? |
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Is it worth $200.00 a year to insure a vehicle worth $2000.00
- $3000.00?
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Insure all your Vehicles with the
Same Company |
By doing this you can, in most cases, qualify for multi-vehicle
discounts (10%-15% off each vehicle). Check with your agent
if you have vehicles with different insuring companies.
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Before Submitting a Small Claim, Consider
the Possibility that doing so may Increase Your Premiums |
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Most auto insurers provide "Accident Forgiveness" on the first accident.
However, a second fault claim during a 6 year period will
definitely affect your premiums. Cancellation or non-renewal
could result, placing you in the Facility or non-preferred
market.
With home insurance, you could lose your "claims free"
discount. Be sure to contact your agent about the ramifications
of putting in your claim. Remember that personal belongings
stolen from a vehicle are covered under your home policy and
not the auto policy. Also, a vehicle in your garage is covered
only by your auto policy with no coverage under the home policy.
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Do not cut back on the Important Coverages |
Make sure you have the replacement cost coverage on your
home or tenant's policies. I recommend a minimum of $1,000,000
liability on your auto policy. (Generally, the cost to increase
this coverage from $500,000 to $1,000,000 would be less than
$50.00/year).
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Take a Personal Inventory of what you
own: |
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In the event of a loss, you will be more accurate in determining
what is missing. For those of you who are not prepared to
make and update such a list, I suggest taking a video of your
possessions. Most of us find it easier to remember with pictures
rather than by memory.
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