One of the best parts of my job is educating potential clients on how insurance works – including how filing claims may or may not affect their future premiums. I often suggest that if their objective is to lower out-of-pocket expenses, and if they are comfortable doing so, they could raise their deductibles – thereby taking on more risk and lowering that of their insurer.
I also have the opportunity to explain that a homeowner’s claim should only be made with certain knowledge, knowledge that having 2 claims in 5 years is the probable limit of being able to purchase affordable homeowners insurance again. When I have seen claims made on losses as low as $1500 and the insured paying a $500 deductible, it concerns me knowing that when a significant loss occurs the following year that rates may rise and that the insured has little choice than to pay it. I have been approached by many people in this situation with little I can do to get them an affordable quote. If their prior agent would have had a conversation with them about consequences of homeowner’s claims, they could have made a more informed decision.
On a lighter note, when I suggest to auto clients my reasoning behind keeping a low comprehensive deductible and higher collision deductible – they often understand. Often that understanding comes from the large amount of struck deer and cracked windshields we experience in Pennsylvania and Ohio. Raising a collision deductible as little as $100 can save enough to lower comprehensive deductible by $300 or more; and when you do make a “comp” claim, you will seldom be subject to higher rates – not so with collision claims (unless you have accident forgiveness of course).
So what is this claim I guarantee you will make, there is a caveat – you can only make the claim if you have the insurance – life insurance. Yes, you will die. Big shocker, huh? So why is it that the US is at an all-time low for adults carrying life insurance. Do we have less debt to cover than our parents? Is college projected to cost less in 10 years than it did for our generation?
The average monthly insurance premium to cover a $25,000 car is $65; a $250,000 house will average $75 per month; and your life, or at least a $250,000 value on it, may only cost you $20 per month. Let’s talk – call me toll-free at 844-675-2111.