Why it matters: Insurance carriers have studied the data and they know that new customers that purchased higher levels of liability coverage with their prior carrier perform better (have less claim costs) than customers who carrier low liability limits.
What you should do: Before shopping for a new carrier, call your current insurance company and make sure that your liability limits are no lower than $100,000 per person, $300,000 per accident and $100,000 for property damage. In addition, when seeking a new quote ask for at least 100/300/100 or better yet, 250/500/100 limits.
TIP: Most insiurance carriers use this variable as a significant rating factor with the hardest weight held against thoase that carry the lowest limits. However, we have not come across any carrier that stipulates how long bfore changing carriers you need to carry the high limits so changing now could help your new rates by as much as 40%.
Why It matters: Insurance scoring has been around for over 15 years and is now used in virtually every state. Insurance carriers report that data rerioved from a credit report is a much better predictor of future claims costs than even a drivers motor vehicle driving record.
What you should do: Obviously, working towards a high FICA score will save you money in many ways beyond insurance…….so listen to the experts and work on getting your scores headed on the right trajectory. In addition, if you know that your spouse has a better fica score, make sure you ask the agent to run the quotes with your spouse as the lead named insured. We have found that even if we list both husband and wiofe as named insureds, most insurance carriers are only ordering the insurance score on the lead named insured.
TIP: Most Insurance carriers lock the credit factor at time of initial writing of the policy and do not re-run credit at renewals. Therefore, if you know your credit has improved, ask your agent to re-run the credit score or have them shop the policy around to multiple carriers.
Combine home and auto insurance for Package Savings
Add on savings for Umbrella policy and valuable items coverage
Consider accident forgiveness plans or deductible savings plans
PIP- amend to have health insurance primary, eliminate PIP option 1-16, look at limit and deductible
High deductibles (but ask for full glass) on comprehensive and collision
Avoid changing carrier frequently
Engage with an independent agent that represents an assortment of carriers
Look beyond the price as specific coverage offerings like OEM parts, worldwide coverage for rental cars, new car replacement, full glass coverage and others truly differentiate carriers