Spring Cleaning

The holidays are finally over and it’s almost spring! The days are getting longer and the sun is a bit brighter. Birds are chirping and trees and bursting with buds. Gone are the days of cabin fever; now it’s time to polish everything up for the fresh new season.

Now is the perfect time to do a little spring cleaning … to your insurance policies! Follow these simple guidelines to be sure your policy is spotless.

Review and refresh your coverage.

Many people never bother to read their insurance policies, but it’s important to look at the coverage you purchased to ensure it’s enough to protect you in the event of a loss.  Times are changing and prices are rising. The coverage you bought on your home fifteen years ago may be inadequate in today’s economy. Review the policy and ask your agent to calculate a new replacement cost on your home. If you ever suffer a loss, you’ll be glad you took the time to make sure you had enough coverage to help rebuild your property.

Notify your agent of any life-changing events.

Significant events like marriage, divorce, death, birth, driver status, and even the purchase of a home can all have an impact on premium.  Make sure to review your policy and check that all household members are accounted for and rated appropriately.  Do you have a child of driving age? When a child gets a permit, he or she should be rated for on the parents’ policy, not only to help the carrier rate your policy accurately, but also to give the child a head start on insurance. Buy a house recently? Believe it or not, being a homeowner can reduce insurance premiums. And bundling the home and auto policies with one carrier can help save even more money.

Tax money to burn?

Many insurance companies offer a paid-in-full discount, so instead of blowing those refund dollars on shoes or video games, ask your agent for a paid-in-full price for six months or one year, depending on your policy term.  This will eliminate one monthly bill and provide peace of mind for less.

Speaking of money, how’s your credit?

Did you know that insurance companies use an insurance credit score to rate policies? People with less than perfect credit may pay more for insurance than those with good credit scores. Get a free credit report from Annual Credit Report.com, https://www.annualcreditreport.com and clean up those bills in collections. Paying your bills on time will also help improve your credit score, which can translate into big savings on your car insurance! Since most insurance companies charge late fees on past-due payments, even just paying that bill on time can save money. And since companies give credits for having continuous proof of prior insurance, paying your bill on time will ensure you don’t have a lapse in coverage. This will not only save you on your insurance, but will also prevent you from having to pay fines at the DMV.

Discounts? We like those.

There are many discounts available on all insurance policies. Paid-in-full, home owner, and multi-line are just a few. Does your car have anti-lock brakes? Airbags? An alarm system? Vin-etching? If so, tell your agent, because those discounts may not always show up when the company runs the vehicle identification number (VIN).  Customers who take a 6-hour defensive driving course can save up to 10% per year for three years on their car insurance. These courses used to only be available in a classroom-type environment, but now a customer can take the class via internet. Ask your agent today about signing up for the course.  In many cases, the cost of an online defensive driving course can be less than a classroom-style course, and the discount earned will be the same.  Some companies also give paperless discounts (having paperwork delivered via email instead of regular mail), a discount for paying via electronic funds transfer (the money is withdrawn monthly from a bank account automatically) and even an education discount (having higher than a high school diploma or GED), so make sure to explore those options with your agent.

Slow down there, speedy. 

Safe driving is a good idea in any situation, but points on a license can cost you big on your car insurance.  In addition to point-surcharges on your insurance policy, some states force drivers to pay an annual DMV surcharge if they accrue so many points within a specific time period. This fee can be quite large, so it’s worth it to scrub that license until it’s squeaky clean! Slow down and obey traffic devices or signs. Don’t text and drive, and never get behind the wheel if you’ve consumed alcohol or any other drug, prescription or otherwise, that can impact your ability to safely operate a vehicle. Make sure to avoid driving while tired as well to avoid falling asleep behind the wheel. Keep up with vehicle inspections and have your car serviced regularly. These simple tips will not only help you, but will help everyone on the road. The safer you are, the cheaper your insurance will be.

Know your role.

You are a very important part of your insurance policy. Your agent relies upon you to give him or her updated, accurate information in order to insure you appropriately at the best possible price.  Make sure to update your contact information and check in with your agent regularly to let him or her know what’s going on in your life. Insurance products are changing every day, and your local agent’s office is constantly coming up with new ways to protect you.  It’s your agent’s job to tell you about these new products and features, and working with him or her will guarantee you have excellent coverage at an affordable price and the latest and greatest innovations in insurance.

By Jessica L. Degarmo