Before you call or ask for a quote, have your auto policy in hand. Inform the agent of your deductible amounts and limits of liability, medical payments, uninsured motorist, towing and labor and rental if needed. This way you are comparing exact coverages in comparing premiums.
Multi line Discounts
All insurance companies give discounts for multi line policies. Meaning that if you have your auto, homeowners, life, health or business insurance with the same company, these discounts will be applied to all policies. If you are satisfied with a certain company, it could be to your advantage to have them quote all your insurance needs. Many times you can save hundreds of dollars with multi line discounts.
Auto Deductibles
The comprehensive and collision deductible amount for your auto policy will greatly impact your premiums. Simply, the lesser the deductible, the higher the premium. The greater the deductible, the lower the premium. Comprehensive and collision deductibles can range from zero to one thousand dollars. Having the highest deductible can save you hundreds of dollars yearly on auto insurance.
Homeowners Deductibles
Deductible means that the insured pays the first part of every loss up to the amount of the deductible. This reduces the cost of insurance by reducing the number of small claims. It is wise to carry a large deductible on your Homeowners policy in order to lower the cost of insurance.
Note: Did you know that an insurance company can and will cancel your homeowners policy for filing too many claims within a certain period of time. Many people tend to view their homeowners policy as a home maintenance policy. Filing too many claims (regardless of the size in dollar amount) will result in a policy cancellation. When this happens, you will pay double to triple the amount for another homeowner policy. Most insurance companies will cancel a policy if the policyholder files three or more claims within a calendar year.
Homeowners Scheduled Personal Property:
The homeowners policy is designed for use by the "average" homeowner. Many homeowners have needs that exceed the coverage limits of the homeowners policy.
Any item that is valued for more than the policy limit, needs to be listed in a scheduled personal property endorsement. This includes jewelry, furs, cameras and equipment, musical instruments, silverware, golf equipment, fine arts, postage stamps and coins.
Many insurance companies now offer an option for Identity Theft protection, that can be added to your homeowners policy. It is a good idea to check the availability of the identity theft option with your agent.
Do You Need A Personal Umbrella Policy?
A Personal Umbrella insurance policy can provide more extensive Liability coverage than a personal lines policy. A Personal Umbrella policy is simply a Liability extension to one's homeowners or auto policy. Some insureds need more extensive Liability coverage to protect assets. A Personal Umbrella pays when ones homeowners or auto liability has been exhausted. For instance, if you carry $100,000 liability on your homeowners or auto insurance and are found liable by the court for $300,000. A Personal Umbrella policy pays the difference between your homeowners or auto liability limit.
Whole Life vs term Life
Insurance companies are investors, they invest your premiums into funds that yield much more profit than the cash value of your whole life or universal life policy. Take your money and do the same. Invest into a mutual fund.
You can buy term insurance for pennies on the dollar compared to universal life or whole life. Take the difference you would have to pay between a whole life policy versus a twenty year term life policy and invest the savings in a mutual fund.
Being properly insured can save you thousands of dollars and circumvent unforseen financial disaster. Please visit http://www.myinsuranceanswers.com for answers to all of your insurance questions.
Charles French is an independant insurance agent and webmaster for http://www.myinsuranceanswers.com
Article Source: http://EzineArticles.com/?expert=Charles_French
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