Good morning one and all! Sorry about the delay in getting a post up – Sammy’s been one busy blogger! Too many bones in the fire, I guess. For part two of 4 ways NOT to save on your insurance, we’ve decided that we are going to discuss removing coverages from your policy or cancelling the policy.
We can both understand the idea behind removing coverages. Times are tough right now for a lot of people. You’ve been paying money into a policy that, in most cases, you’ve never used. You need to cut back on costs – and “why should I keep paying for something I don’t use?”
Here is the main problem with removing coverages from your policy – there could come a time when you DO have a claim, and need the coverage you’ve deleted. If you’ve removed it completely (or cancelled your policy), then you will pay for your claim entirely out of pocket.
“Well, I haven’t had a claim in years!” you say “Why would it be more likely that I’ll have a claim after I remove the coverage?”
“You’re right” Sammy says “removing a coverage won’t increase the likelihood that you’ll have a claim. BUT, no one schedules when they have a claim – it often happens at the worst time possible!”
Rather than removing a coverage entirely, you should consider other options – increasing your deductible, reducing (but not removing) the amount of coverage, etc. This way, instead of receiving nothing from the insurance company, you will receive a reduced settlement. Talk to your agent about ways to save on a coverage, rather than just deleting it. Options available will vary greatly depending on the coverage(s) you are considering.
I hope this helps – and we are always looking for feedback – please ask questions or provide suggestions in the comment section.
We’re here to help you rest easy!!