Insurance

7 ways to lower your insurance costs in 2022

You need to shop around for your own insurance coverage: Blindly sticking with the same company year after year will rarely, if ever, result in the best coverage for the best rates. I suggest that you bring in 4 agents every year, or at least every two years، to review your insurance needs، recommend coverage, and provide costs.

I would bring in a regional independent agent, a lead independent and a direct carrier agent. By doing this you are achieving a number of things. First, you are shopping for the best costs. But secondly، and just as importantly, you’re looking to find out what coverage each will recommend. This will help you find out if your current coverage is adequate, whether you are covered or undercovered. If all three companies recommend the same levels of coverage, then you’re probably safe. If two of the three recommend higher or lower levels of coverage than you have، then you better find out why and see if you agree.

You don’t need to be an insurance expert as long as you’re dealing with someone who is. You want to benefit from their expertise, and by undergoing this process at least every two years, that’s exactly what you’ll be doing.

You want each to give you a complete written proposal, including recommended coverage, explanations for those recommendations, and costs for each. Without the cost for each coverage area, you’ll have no way to effectively evaluate one company against another, and you’ll lose the option to pick and choose policies for different coverage areas from one company to another.

Remember, you don’t need to have all of your coverage with one company. In fact، if the individual costs aren’t all the best with one company، or if a company doesn’t have a specific package plan for your type of business, you probably shouldn’t keep all the coverage with one company.

There’s no reason why you can’t have business coverage with one company and auto coverage with another, etc. In fact, unless you are given significant discounts for doing so، the only reason you would buy all coverage from one company، even though some policies may cost more, would be laziness or convenience that often it is nothing but another form of laziness.

I know of a company that had not undertaken a competitive review of their insurance for over 20 years. When they did, they saved themselves $30,000 a year or almost 15% in this case.

2. Make sure you are not over insured:

It won’t do you any good to insure something for $101,000 when the replacement value is only $76,000. The agent and company you more than enough. They will not reduce premiums if you have overstated something and therefore over the insured.

It’s up to you to know the value. If you cover equipment for up to $11,000,000 in replacement value and the total replacement value is only $5,500,000, that’s your problem. You should know or have a good idea of ​​the real replacement value. The opposite of this is also true, don’t be underinsured. Make sure you know if you are covered for replacement value.

This is an area where there is a lot of gray area. This is all the more reason for doing annual reviews. By doing these, you will get opinions and advice from a variety of different sources and a discrepancy is much more likely to emerge. Remember، don’t just ask agents and companies to quote on actual coverage, but to evaluate your operation and recommend coverage and provide cost.

3. Ask your agent what you can do to lower your insurance costs:

They won’t tell you unless you ask. By asking you express concerns about costs. Dissatisfaction with costs should be interpreted by the agent as a sign that you will look elsewhere for coverage. The agent suddenly has a huge incentive to try to reduce the cost control of your business.

4. Look for agents or carriers who specialize in your type of business:

Start by asking for suggestions from any associations you belong to. Also, ask competitors, suppliers, and even the Chamber of Commerce. If there are specific plans for your type of business, you should be able to realize significant savings due to the bundled types and levels of coverage. You will find that the necessary levels of coverage are built into the plan and that if purchased separately, they would cost you much more each year. I was able to save over $1,300 a year by finding a plan designed to cover companies in my industry.

A note of caution though, just because an agent tells you they’re offering a great plan for your type of business, don’t assume it’s true. You still need to get at least three quotes. The agent with the special plan may just be calling it to sell you when it really isn’t special at all. The plan may be designed for your type of business, but is overpriced or contains elements that may be suitable for most types of businesses in your industry, but are not needed at all for your business.

5. Make sure your insurance covers the replacement value and not the actual value:

It may seem like you’re saving money by covering the actual value, but if you have a claim and need to replace lost or damaged equipment, you’ll quickly discover you were too short-sighted. The actual value in most cases will be a fraction of the cost you would need to replace the item. Do not cut corners in this area. Make sure you have replacement value or at least coverage equal to what very good used equipment would cost.

6. Remember, premiums are just another name for payments:

Your purpose is to control these payments; buy only what you need and get the best value for your purchase. Ask for written recommendations on coverage and costs and have the agent justify these recommendations to you. Insurance agents are sales representatives. Insurance is their product. Don’t forget this. Plain and simple, like any other purchase you consider, they should justify the purchase to you.

7. Whenever you have a request, get your rating:

Don’t do what most companies do and just take whatever they tell you the claim is worth. This is not an open and shut case; just because they say so, doesn’t make it so. By securing your own estimate, you can either verify the insurance company’s estimate and know you have a fair settlement, or you can disagree with their costs and fight for a higher settlement. If you simply accept their estimate, you may find that the actual loss involved will cost more, much more in some cases.

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