A-Advantage Insurance Services
Insurance is as much a part of our lives as turning on a light switch and realizing that there is an associated light bill coming in the mail. But why does it have to be so high?
Insurance has always been designed to pay for the risk of loss due to uncertainty. Uncertain loss associated with driving your car, having a fire in your house, or God forbid, the real catastrophes: loss of health, life, or ability to work.
Over time insurance companies have been able to statistically calculate the number of these occurrences, and what they cost. By hiring actuaries and money managers they could in essence, pool the money of the people they insure, earn some money on it, pay out the anticipated claims, and have some profits left at the end of the day.
But insurance today is much different that it was in the above perfect world scenario. Due to insurance fraud, litigation costs, poor investment performance, expansion of "insurance" coverage, government regulation, and just basic higher operating expenses, insurance rates have gone sky high.
These factors unfortunately are just another cost of doing business, or to put it another way, are a cost of taking money out of your pockets.
So the Basics for defensive insurance buying:
- Shop your auto, homeowners, and other insurances that you pay for on a regular basis-at least once every couple of years.
- Look to lower your premiums by lowering your coverage's. Insurance companies always want you to buy more. Make sure the coverage's they are telling you about are really right for you and your family.
- Drive defensively-and pay the little claims out of your pocket. Many times auto insurance companies will pay the small claims (under $1000) and then jack your premiums in the ensuing months/years. You probably won't get another carrier to write you, due to the reported claim, so you get stuck paying for it with higher premiums.
- Review the Arizona Department of Insurance web site for their annual survey of insurance costs. This is a good starting point for finding a different carrier.
- Have expensive things-look to pay expensive insurance. New cars and houses with high sticker prices are going to cost more. Get used to it.
- Assume the small risk-Sometimes by simply raising the deductible you can save some of your premium. Set aside money in a savings account as an "insurance reserve". Face it, this is what the insurance companies do.
Finally give us a call and we can complete an insurance review for you. Our desire is to lower your taxes and your insurance. We have a few more ideas that are two detailed to list here.