It tends to be an older expression that is as pertinent today as it was decades ago. One has to be cautious about becoming “insurance poor.” It simply means to have so much insurance that you can’t afford other things in life you want and deserve. How can you get the coverage you need without becoming insurance poor? Here are nine ways to prevent the condition.
1. Bundle your Policies.
Insurance companies often offer discounts if you carry more than one policy with them. Getting multiple policies from one provider can help you from becoming insurance poor.
2. Increase Your Deductibles.
Increasing your deductibles give you a larger share of the risk, but it is better than doing without coverage. If you feel some of your insurance premiums are getting too high, ask about the impact higher deductibles will have on lowering them
3. Buy what You Need.
Having rental car coverage might be nice on your auto insurance but it may not be as valuable as uninsured motorist coverage. Talk with your agent about getting more of what you need and less of what you don’t.
Not all insurance providers provide the best rates on all loss prevention products. Compare before you buy and recheck pricing at every renewal date.
5. Drop Comprehensive and Collision Coverage on an Older Car
If you have an older car, you may be paying more for comprehensive and collision coverage than it may be worth. Check the replacement value of your car to make sure maintaining comprehensive and collision coverage is worth it.
6. Check Your Homeowners’ Insurance.
If your homeowners’ insurance premium is included in your mortgage payment it can be easy to even forget what you are paying for it or if you have sufficient coverage. Make sure you have it reviewed occasionally.
7. Pay Premiums Through Auto-Pay.
Setting up insurance payments through auto-pay can save you significantly over the course of a year. This can be a step to prevent you from becoming insurance poor.
8. Minimize Overlapping Coverage.
In some cases, coverage may overlap between policies, providing unnecessary double-protection in some areas.
9. Schedule a Complete Insurance Review.
It can be invaluable to have a complete insurance review with a trusted independent insurance agency so you know what you have and you have what you need.
We would be happy to help you sort through your policies to help you from becoming insurance poor. Contact us to schedule a no-obligation review of your policies.