What is the harm in saving money?

We all want to get a good deal. Some of my friends know that I am all about saving money. They even have standing jokes about my frugality. Yes, I get it…The buffalo hollered: Hilarious 😉 But I also understand that you have to get value for your money.

Take Car Insurance For Instance

I see a lot of commercials for car insurance companies reporting savings but they never quite cover where those “savings” come from. It may surprise you to know that the savings that get reported by some insurance companies are only savings because the policy that was sold to that person did not include all the coverage that they had previously.

In our case when someone goes to get a quote at ayiinc.com we are only interested in saving you money by creating true competition for your business. That is why we offer more choices of insurance companies. Often times this means that clients get better insurance coverage for less money. We call it our formula for success:

More Choices. Better Coverage. Great Price!

What we find is that if we follow this formula for our clients they not only get a great deal but they also get the coverage they need when they need it. It also means that our clients are never tied to any one carrier. When their policy renews in 6 months or a year with All Your Insurance we can use the power of #MoreChoices to make sure that the renewal offer is still the best option.

Are there changes that you can make to your coverage for added savings?

There are changes to coverage that can lead to savings BUT you need to be aware of what risks you are taking. That being said there are many clients who may not need as low of a deductible on their comprehensive and/or collision coverage. If you have a $250-$500 deductible you can ask your agent to quote one level higher. You can then compare this savings to the added cost you would need to pay in the event of a claim. If you are someone who does not use their insurance regularly then by lowering your deductible you are guaranteed to pay more for your insurance so that you can minimize your outlay if and when you make a claim.

Medical payment is another caution area. You have to be aware of another insurance policy coverage you may have before you make any changes to this coverage. Med Pay pays a benefit if you need short-term urgent care. It is secondary coverage meaning that your health insurance coverage will most likely get used in a severe accident as Med Pay limits are usually too low to cover the whole bill. So if your health insurance is primary then why have Med Pay at all? Just like in your auto insurance most health Insurance plans carry a deductible as well. Med Pay is a great tool to offset that deductible cost. So what about the savings? Generally you should find out what your Health Insurance deductible is and then correlate your Auto Insurance Med Pay to that amount. If your current Med Pay is higher than your Health Insurance deductible then you may be able to lower the Med Pay and save some money.

Towing coverage and Rental Car Reimbursement are another way to potentially save money on your Car Insurance without exposing yourself to a lot more risk. You can have your agent play around with the dials of your policy and see if lowering these limits saves enough to warrant having to cram into a Fiesta for a week while your car is in the shop for a covered loss.

Special Insurance Insider Tip

Having glass coverage in Phoenix (or anywhere in Arizona for that matter) seems to be a must. One thing I would say is to look at the numbers for your policy with and without this coverage. If you are paying more than $100 per year for this coverage then you may want to take good look at some stats to see if you think you should continue to have this coverage.

A recent study found that on average you are going to need to replace your windshield once in the next three years. A new windshield cost varies greatly depending on your make & model of car but it also depends on if you have insurance or not. When you demand the cash pay price instead of the amount the glass repair company may charge the insurance company you will find that a new windshield costs around $300. Remember that “$100 more per year” I just referenced. If you spend let’s say $150 more per year for the next three years for the chance to save $300 you might be paying more than you need for this coverage. Again this math is very easy for your agent to perform for you. Click of a button and they can let you know how the numbers stack up.

When it comes to saving money make sure there is not a hidden cost

First, make sure that you are properly protected. Second, know what coverage on your insurance policy can be changed without exposing you to too much risk. Last, get your rates from an independent insurance agent in your local area. They will be able to play the field on your behalf with National and Regional insurance carriers so you are getting the policy you need at a price that you deserve.

By le Mec, The Insurance “Guy”
All Your Insurance, inc
4531 N 16th St ste 122
Phoenix, AZ 85016

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