Consumer Article: Posted by Big “I” July 2009.  Lower Your Insurance Costs. Good Advice or Bad?

 

Why do I need to buy Insurance for my home, business, and automobile?

• Protects your assets against attachment as a result of a court award.
• Provides for cost of defense when you are sued.
• Allows you to purchase such high value items as a car or a home by insuring the collateral on behalf of the financial institution that lent you the money.
• Provides financial security for your family in the event of your death.
• Provides for the health care of you and your family through systematic payments.
• Allows you to save for retirement while deferring interest payments to a time when your income is lower, thus reducing your tax payments.
• Allows you to remain financially solvent when you’re ill and can’t work.

What factors affect the insurance premiums I pay?

• Claims activity including such costs as medical care, auto body repair, construction, legal defense, jury awards, claims adjustment, and insurance fraud.
• Overhead including rent, utilities, employee salaries and benefits, office supplies, equipment, and furniture.
• Investment income.

I’m a college student.  Am I still covered by my parents’ policies?  

College students face many new risks as they head off to school: theft of personal property, auto accidents due to driving long distances, and risks related to attending and giving parties.

 

At least one in 10 college students revealed that they had caused an auto accident in the last two years. One in four had a speeding ticket or other moving violation. These and other offenses contribute to higher Auto insurance premiums for students.

  
Why should I choose an Independent Agent?

There is a difference in where you buy your protection. Many people don’t realize there are three sources for insurance:

• Captive Agents, who can sell you the insurance of only one company.
• Telephone Representatives, who can offer you the insurance of one company, and only on the telephone.
• Independent Insurance Agents, who represent a number of insurance companies, and research with these firms to find you the best combination of price, coverage and service.

 

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