Two years ago, I was involved in a car accident. It was my fault and my car got totaled. The other person involved in the accident had serious injuries and had to have surgery. I also had many health issues that resulted from the impact of the crash.
Insurance is one of those things that may be annoying to pay, UNTIL something happens! Boy am I glad we had the coverage we had, or we would have been in financial ruin from the almost $100K in expenses from the other person’s medical expenses, not to mention the expenses from both cars being totaled.
I’m sure most of us have insurance, and know why it’s important to have. But did you know there may be some things you are missing that are costing (or may potentially end up costing) you hundreds or even thousands?
Here are 5 Things You May Be Overlooking in Your Home/Auto Insurance:
1. Having a Low Amount of Personal Injury Protection or “PIP”
Every person that has insurance is automatically entitled to $3,000 in PIP coverage. PIP gives everyone in your vehicle $3,000 in coverage for medical expenses. This isn’t something you necessarily have to worry about if the accident wasn’t your fault, because the other person’s insurance will pay for your injuries. BUT if you get injured in a crash that was your fault, this is where this becomes important. I found out the hard way that $3K gets eaten up pretty quick between the ambulance ride, and hospital visit. And I didn’t even have very bad injuries. I found out that we could have had $10K in personal injury protection just by paying a few extra dollars per month. We have now switched over to that, and everyone in our car will now be covered at $10K for injuries. I suggest it!
Thousands of dollars in hospital bills could have been avoided, just by paying a few extra dollars a month!
2. Having Surprisingly Low Amounts of Coverage, Even from BIG Insurance Companies like Farmers, Nationwide, Allstate, etc.
Just because the big dogs, like Farmers and Nationwide are the most well known companies, doesn’t mean they are offering the best rates OR the best protection coverage. About 8 years ago, we had Farmers insurance. We wanted to pay a little less than we were and somehow got in contact with an Independent Insurance Agent. He has saved us thousands! We switched from Farmers to a less well-know company called Encompass. With Farmers we only had $65K in bodily injury from an auto accident. If we would have only had that amount with the crash I got in a couple years ago, we would have been up a creek! Like I mentioned above, the injuries from the other person came to about $100K. So would we have had to pay the extra $35,000 in medical expenses? It’s scary to think about! Make sure you are covered well and think about contacting an independent insurance agent that can really get you the best rates.
Here is a really good independent agent I trust and he will give you a $15 Amazon giftcard if he can’t beat your current insurance rates!
Caliber Select Insurance
Give him a call. He’s the best and can save you tons. He will also go over what the best coverage options are for you in your individual situation.
The other nice thing about having an independent insurance agent is that they represent a bunch of different companies and can get you the best rates. After my accident, my rates were going to go up, so the agent just switched us to another insurance that didn’t penalize for one accident.
3. Not Having a Rental Car on Your Policy
If you get in an accident and have to have your car fixed, if your insurance doesn’t pay for a rental car, that may leave you not only in a pickle, but may even end up costing you hundreds! Adding a rental car to a policy is only about $20 more a year, so that may be something you want to think about. We did have that on our insurance, and it was very nice to have the car rental, so we could go back to normal life!
4. Being Over Insured on Homeowner’s Insurance
A lot of people don’t realize that they are probably over insured on Homeowner’s Insurance. The reason for this is that when you bought your house, they insured it for the purchase price. However, that could have been as much as 10 to 20 years ago. Insurance companies will raise your Homeowner’s rate and coverage ever so slightly each year, even though you are paying down the principal. Insurance agents advise people to reevaluate their homeowner’s policy every 3-5 years to ensure that they are getting the best rate and the right coverage.
Another interesting thing to note is that insurance companies HATE trampolines (for obvious reasons.) So if you are a homeowner and are thinking about getting a trampoline, you must make sure that it will be fenced in completely, otherwise no carrier will take you. Yikes!
5. Missing Out On a Discount If Your Insurance is Paid in Full for the Year
Most carriers will offer a pretty significant discount if you pay for the entire policy in one lump sum rather than spreading it our over the course of the year. However, a lot agents don’t disclose this because it makes their commissions go down. Each carrier’s discount will be different, but this may save you hundreds if you have the cash to pay upfront.
I hope this information has been helpful to you and that it will motivate you to check your coverage to make sure it is where you want it. Call Bryson to see if he can get you a better deal. I think you’ll be surprised! And most of all, make sure to buckle up because if I would not have been wearing my seat belt in my crash (even though it was just on main street in Brigham city) I know I would have been seriously injured, judging by how much force I felt from the impact!