Checking the Spare Tire
How many of you have checked the air in your car’s spare tire recently? Me neither, and I’ve been that guy with the flat spare when he needed one. In the same way, we often forget about the spare tire in our car until we experience a flat, and many of us tend to review our insurance policies when we’re filing a claim. It's there in the background, offering a sense of security, yet we often overlook its importance until we need it. That's where National Insurance Awareness Day comes in, held annually on June 28. It serves as a reminder to appreciate this safety net we so often take for granted.
Here are a few expert tips for making sure you have the appropriate home and auto insurance:
1. Shop Around: As with any significant purchase, it's essential to explore various options before settling on one. Insurance companies differ in the premiums they charge for the same coverage. So, don't rush into buying a policy from the first insurer you come across. Take the time to get quotes from several companies and compare their offerings.
2. Bundle Your Policies: Many insurers offer discounts if you purchase more than one type of insurance from them. Bundling your home and auto insurance, for example, could result in significant savings. This not only simplifies your insurance management but also can lead to a more favorable rate.
3. Maintain a Solid Credit Score: Did you know that your credit score can influence your insurance premiums? Insurers view individuals with good credit as less risky, which can result in lower premiums. So, pay your bills on time, keep your credit card balances low, and check your credit report regularly to fix any errors.
4. Choose a Higher Deductible: A higher deductible means that you're willing to pay more out-of-pocket if you need to file a claim. While this might seem daunting, it can lead to lower monthly premiums. However, make sure you can comfortably afford your deductible in the event of a claim.
5. Take Advantage of Discounts: You'd be surprised how many discounts are available with insurance policies. From safety features in your home or car to being a good driver or a member of specific organizations, there are several ways to reduce your insurance costs. Be sure to ask your agent about these opportunities.
6. Review Your Policies Regularly: Your insurance needs might change over time due to various life events such as buying a new car, renovating your home, or changes in your neighborhood. Regularly reviewing your policies ensures that your coverage remains adequate and allows you to adjust it as necessary.
7. Limit Your Claims: While insurance is there to protect you when you need it, frequently filing claims can lead to increased premiums. If the cost of a repair is significantly less than your deductible, consider paying out-of-pocket instead of filing a claim.
8. Keep Your Home and Vehicle in Good Shape: Regular maintenance can prevent damage and help you avoid making claims. This, in turn, can lead to lower premiums. Plus, many insurers offer discounts for homes and vehicles equipped with safety features.
9. Understand Your Coverage: Make sure you thoroughly understand what your policy does and doesn't cover. This can save you from unpleasant surprises when you need to file a claim and ensures that you're only paying for the coverage you need.
10. Work with a Trusted Broker: A reliable insurance agent or broker can be an invaluable ally. They can help you navigate the complex world of insurance, find the best rates, and ensure you have the coverage you need.
What Is the Goal of Insurance?
Remember, the goal of insurance is to protect you financially. While it's always beneficial to save money where you can, the cheapest option isn't always the best. Make sure you have sufficient coverage to protect yourself and your assets. It’s a good idea to have your financial advisor keep an up-to-date copy of your coverages as well so they can advise you on any gaps they see.
I hope you have a wonderful National Insurance Awareness Day this year surrounded by friends, family, and loved ones. I mean, it sounds like a good excuse for a cookout to me. Oh, and maybe check the air in your spare tire.
Provista Wealth Advisors in Greenville, SC, provides peace of mind through personalized asset management, expert estate planning, and retirement planning. Navigate your financial journey with confidence. Rest Assured, We Have A Plan. Give us a call at (864) 696-2410 or send us a message to schedule your free introduction meeting.