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Downers Grove, IL 60515

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MONEY SAVING IDEAS TO HELP REDUCE PREMIUM COSTS ON PERSONAL INSURANCE

During these tough economic times, we are asked the question almost every day, "What can I do to keep my personal insurance premiums down?" There are several ways to do this, and some are easier than you may think.

• Consider increasing both your homeowners and auto insurance deductibles to the highest one you can afford. Even if the premium savings do not seem worth it, it can serve more than one purpose. Not only will you see a premium reduction, but since you won't be submitting smaller claims, chances are your claim history will be favorable. All personal insurance companies look at your claim history when determining the rate, so a good claim record will help keep your premiums lower.
• Always consider purchasing all personal insurance coverage with the same insurance company. Most personal insurance companies offer discounts for combining your homeowners and personal auto policies and these discounts can be substantial. Several insurance companies are adding further discounts for additional policies, such as a personal umbrella policy, scheduled personal property policies and even a recreational vehicle policy.
• Believe it or not, insurance companies use your credit rating when determining your insurance rates and the better your credit, the better your insurance rate. It pays to check your credit rating. There may be errors which could negatively affect your rating and many times, they are easy to fix. Most credit bureaus have a procedure to fix these situations. Many times a spouse can have a different credit rating than their husband or wife, so it also pays to know which one has the best credit.
• Many companies also offer discounts for maintaining continuous insurance with a prior carrier and also give a lower rate when a high limit of liability has been maintained. This is a great reason to not let your personal insurance policies lapse. Some companies may look at your payment history on your insurance policy, so it also pays to make your premium payments on time. Many companies also offer discounts to long time customers.
• Remember to tell your agent if you have an alarm system in your home or car. The discount for a home alarm system can be substantial. Many companies are also offering additional discounts for additional services provided by alarm companies, such as signal continuity, temperature monitors, water leak detectors and gas leak detectors. There are also additional credits for installing a back up generator or if you live in a gated community.
• If you are purchasing a home, remember that most companies offer a "new home discount." This discount usually is reduced each year the home gets older. Some personal insurance companies also offer a discount for a newly purchased home, regardless of the age. If you are considering purchasing a home, ask us to run a CLUE (Comprehensive Loss Underwriting Exchange) report on the home. This report will provide a list of prior losses for that particular location. Many times an insurance company will add a surcharge for losses at that location even though they were for the prior owner. It can also give you advance warning of water or mold losses at the location.
• If you insure young drivers on your personal automobile insurance, many companies offer a good student discount. Most companies require that the student maintain a B average or above in order to qualify for this discount, which can sometimes be substantial. There are also driver safety classes available for which many companies offer a discount.
• Consider paying your premium in full as some companies offer a paid in full discount. If you must pay your premiums in installments, consider having the funds automatically withdrawn from your bank account. Since most companies add a service charge for sending you a paper bill, you can usually reduce this fee by having the funds electronically withdrawn.

Remember, the lowest price doesn't always mean the best deal. Consider the financial rating of the insurance company, claim payment history and customer service. Many policies contain built in features and enhancements, so it always pays to know exactly what is included in your policy. Please call us if you would like to review your policy to make sure you are receiving all discounts you are entitled to.