Insurance
Tips to Save Money on Your Coverage
Insurance issues are among the most perplexing, most persistent and potentially most expensive financial issues now confronting Floridians. But diligent research and careful planning will help ensure that you are protected and that you are using your insurance budget wisely.
Here are some tips to help get you started:
Most importantly, spend some time at the website established by the State of Florida's Office of Insurance Regulation. A branch of the Florida Department of Financial Services, this agency has assembled an enormous wealth of consumer-oriented resources.
You can check out your insurance company and your insurance agent. You can compare rates offered by various insurance companies. You can monitor developing issues regarding all types of insurance coverage in Florida. You can file complaints. And much more.
Start here and eventually navigate to the "Consumers" section: www.floir.com/index.aspx
- Eliminate duplicate medical coverage. If you have adequate health insurance from your employer or another source, you probably don't need the medical coverage offered on your auto policy under the categories of uninsured and underinsured motorists payments, medical payments or additional PIP. Call your agent and discuss the pros and cons of eliminated that duplicate coverage.
- Drop comprehensive and/or collision coverage on older cars. A good rule of thumb: If the vehicle is yours free and clear and worth less than $1,000, it is probably not cost effective to carry this type of coverage.
- Increase your deductibles. For example, increasing your collision deductible from $200 to $500 can reduce your collision premium by 15 percent to 30 percent. (You would have to pay an additional $300 for any insured repair that might be necessary, but the chances are that increasing your deductible will save you money over the long run.) When getting quotes, compare prices using various deductibles.
- If possible, place your homeowner and automobile coverage with the same company. Many companies will offer a 5 percent to 15 percent discount if you buy both policies from them.
- Determine if you are carrying mortgage insurance and, if so, see if you can eliminate it. This insurance (often called PMI or private mortgage insurance) generally is required for mortgages worth more than 80 percent of a home's value. So, try to put down 20 percent when you buy your home. If you can't do that, monitor your account and when the mortgage value falls below 80 percent of your home's value, make sure that your lender is obeying a federal law that requires elimination of this charge when you reach that general threshold.
More information is available here:
www.floir.com/index.aspx
www.insureuonline.org/
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