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Insurance Consumer Tips
Before reviewing tips that may help with the cost of insurance, you should understand why premiums can go up, even in the absence of a claim. When factors that determine your insurance increase, so can premiums. Here's just a few examples:
- Between 1994-98, the average hourly auto repair shop rate in Ohio increased nearly 15%.
- Between 1992-96, the average per diem cost of a hospital room in Ohio increased nearly 31%.
- Insurance fraud cost Ohioans an estimated $4.3 billion in 1996, over $1,220 per family.
- Auto-related bodily injury claim awards rose 19.6% between 1988-97 while the average property damage claim rose 41.2%.
- Home construction costs rose 15.4% between 1993-98.
GENERAL INSURANCE TIPS
There are a number of steps to take that ensure you're spending your insurance dollars wisely.
- CONSOLIDATE INSURANCE NEEDS: If you have a need for more than one type of insurance (i.e. auto, home and life) you should be able to obtain a discount by having your insurance serviced by one provider.
- SEEK DISCOUNTS: There are a number of discounts available, which vary by company. Some affect a portion of your coverage; others may affect the entire premium. Ask which discounts may apply in your situation.
- CONSIDER RAISING DEDUCTIBLES: By increasing your deductibles, you are responsible for small losses, not your insure.
AUTO INSURANCE TIPS
- CHOOSE THE RIGHT CAR. Before buying a car, ask an agent or company representative to compare insurance rates of similar models. Premiums are higher for most luxury, sport models and four-wheel drive vehicles because of higher collision and repair costs and auto theft experience.
- CONSIDER ELIMINATING COLLISION AND OTHER THAN COLLISION COVERAGES. This is especially true as cars get older and depreciate in value. However, keep auto liability coverages intact.
- REDUCE YOUR DAILY DRIVING. Statistics who that the farther you drive, the more likely you are to be involved in an accident and the more you'll pay for insurance. Consider alternate means of transportation.
- BECOME A DEFENSIVE DRIVER. One at-fault accident or major traffic violation may increase rates by as much as 40% and, in some cases, can place you in a high-risk category. Some companies reward policyholders for remaining accident-free for a specified length of time.
- DOUBLE-CHECK HOW AND WHERE YOU PARK. The cost of vandalism and auto theft are often overlooked. When leaving your vehicle, close all windows and lock your car. Park under streetlights and in areas that are not prone to sideswiping.
- ASK ABOUT DISCOUNTS. Most insurers provide multiple car discounts. Although they vary by company, some of the more common ones include good student / safe driver discounts, safety feature discounts (airbags), discounts for antitheft devices and driver training / defensive driver training program discounts.
HOMEOWNERS / RENTERS TIPS
- CONDUCT AN ANNUAL CHECK-UP. You may find yourself over-insured or underinsured based on home improvements and the purchase or depreciation of separately insured items such as jewelry, fine art or other collectibles.
- ELIMINATE HAZARADS AROUND THE HOME. Remove or replace such safety hazards as dead tree limbs, cracked sidewalks and steps, loose hand railings, etc. Replace old, faulty wiring and make sure to tell your insurer.
- CHECK ROOF FOR LEAKS AND KEEP GUTTERS CLEAN. Some losses are easily preventable through routine checks of your roof and gutters. Rain and ice buildup can cause serious problems to interior walls and even structural damage.
- CONDUCT AND MAINTAIN A HOME INVENTORY. Keep an itemized list of your household furnishings and personal belongings. Photograph or videotape your rooms and note the make and model numbers of stereos, computers, TV's and other home electronics. Store these records off-premises, preferably in a safe deposit box. This information will prove to be invaluable in the event that you file a claim.
- ASK ABOUT DISCOUNTS. Some companies provide homeowners discounts for newly constructed homes, since they're built to updated building codes and electrical standards. Most companies offer discounts for homes that include a monitored security system. If you've had your home insured with the same company or agency for several years and have been claim-free, you may also be eligible for an additional premium discount.
- OPT FOR GUARANTEED REPLACEMENT COST. Although it costs more, you're better off if faced with a major loss. A replacement cost policy pays to replace the damaged property or loss, regardless of the age and condition of the damaged property, with materials of similar kind and quality. An "actual cash value" policy provides reimbursement at the loss' depreciated value.
- COVER YOUR HOME OFFICE. Don't assume automatic coverage.
- PROTECT YOUR HOME AGAINST TYPICAL PERILS. By preventing losses and claims against your policy, you can help to keep the cost of insurance down. These include:
- KEEP FIRE EXTINGUISHERS IN THE FIRE-PRONE AREAS such as the kitchen, laundry and garage.
- DISCOURAGE CRIME BY USING EXTERIOR LIGHTS AT NIGHT, install deadbolt locks on all doors, and use timers on inside lamps and lights.
David M. Coleman Insurance Agency, Inc.
190 Currie Hall Parkway
PO Box 686
Kent, OH 44240
Phone: (330) 673-0485
Toll Free: (800) 732-0851
Fax: (330) 673-3390
Map to Office: Click Here |
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