Saving on your car insurance-If you haven’t combined your home and auto coverage with the same company, you’re missing out on a big discount. Another way to save on auto insurance is to increase your deductible. Raising it from $200 to $1,000 can cut your premium by as much as 40%! Your insurance agent can tell you about discounts for being a safe driver, having anti-theft devices on your car and completing a defensive driving course, among others.

What determines the cost of insurance?-Ever wonder how an insurance company prices its policies for your home or auto? Simply put, some of the cost is due to you, some to the home or auto you are insuring, and some is the world around you. Insurance companies look at the customer’s prior claims history. If there are no adverse findings, you are insurable. Next, they look at the item being insured. If it’s a house, how old is it, does it have a history of claims for things that might recur like water damage or mold? To price an auto policy, the make and model of car is considered. Some cars are more expensive to insure than others. High performance vehicles are an obvious example, but there are some cars that are expensive to insure for less apparent reasons such as popularity with car thieves, for example. How far you drive each year and whether the car is used for commuting, business or pleasure brings you back into the equation. Finally, there’s the environment in which the insured object is located or driven. Hardest to insure and most expensive are homes in the likely paths of storms or brush fires.

Vacant home coverage-Vacant homes have hit an all-time high – and that means insurance problems for sellers. When a homeowner moves out and the house remains empty, it continues to be protected by homeowners insurance for risks such as fire, as long as the premium is paid. But after 30 days of vacancy, things like vandalism, water damage caused by broken pipes, and theft are no longer covered. Exclusions in coverage for vacant properties are not new. Insurance companies believe that damage to a home is more likely when no one is living in it and that certain things grow worse with inattention. They even reserve the right to cancel what coverage remains in force when they learn of an extended vacancy.

Umbrella Policies-A lawsuit can wipe out your family’s financial security. That’s why excess liability coverage – a so-called Umbrella Policy – should be in everyone’s insurance portfolio. Homeowners and automobile insurance policies provide liability coverage. But those policies have limits – usually no higher than $500,000. Anyone hurt in an auto accident involving your car or injured on your property has the right to sue you. A lawsuit judgment over the amount in your insurance policy is your responsibility. An Umbrella Policy adds additional coverage to home and auto policies to protect you. The more you earn and the more you own, the more you need an Umbrella Policy.


Insurance Misconceptions-The National Association of Insurance Commissioners found that out when they surveyed people about homeowners insurance that half of the respondents said that their homeowner’s policy would pay to repair a broken water supply line on their property. A third thought the same about a broken sewer line. About 30 percent thought that termite damage was covered and two-thirds believed that a car, boat or motorcycle stolen or damaged on their property would be taken care of by homeowners insurance! Other common misconceptions include the notions that flood and earthquake damage are covered by homeowner’s policies. Make sure you are clear on what your insurance provides. An emergency is no time to find out you don’t have coverage.