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First I
recommend you
find a
really good
insurance
agent. If you
read my “How to
Test a Loan
Officer” page
then you can
apply the same
principles to
insurance
agents. There
are tons of them
out there with a
small percentage
being that true
professional.
Insurance is
about
transferring
risk. You pay
the insurance
company to take
risk on your
behalf. The
less risky you
are, the less
your premium
should be. Here
are some simple
tips that might
reduce risk and
premiums:
-- Call a good
agent and ask
them to
teach
you how to get
lower premiums.
-- Raise your
deductibles /
voluntary
excess. You
have to pay more
should something
happen, but if
you have an
emergency fund
that’s not a
problem.
-- Pay your
insurance bills
in full and
never in
installments.
If you do the
math, most
insurance
companies will
charge the
equivalent of up
to 30% interest
in service
charges and fees
for paying
monthly or
quarterly. Pay
in full to get
the cheapest
premium.
-- No claims
discounts can be
big. If you’ve
gone a period of
time (3-5 years)
with zero
claims, call
your agent and ask
about it. Be
careful when
submitting small
claims as your
increased
premiums could
cost more than
if you paid
yourself.
-- Anti-theft
and burglary
devices really
reduce risk.
Alarms, tracking
systems,
immobilizers,
security lights,
etc. are all
things to tell
your agent
about.
-- Keeping all
of your
insurances with
the same company
can result in
nice multiple
policy
discounts.
-- Think outside
of the box and
tell your agent any
reason you are
less of a risk.
Do any of these
things apply to
you?
Good grades in
school
Outstanding
credit history
Clean drivers
license
Perfect health
Parking in a
garage or
driveway vs. the
street
Married
Drive to work
got shorter
Driving fewer
miles per year
Taken an
advanced driving
course
20/20 vision
Are in a
neighborhood
watch program
Live near a fire
station, police
station, or
hospital
Fire hydrant
nearby
Have a good safe
in the house
Take a walk
around your
home, your
neighborhood,
your car, and
take a good look
at yourself.
Make a list of
anything that
makes you less
risky and then
take that list
to your insurance
agent.
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