Reduce Your Premiums the Right Way Read on for ways to reduce your insurance premiums without sacrificing coverage. Summer 2009 Issue

 
To find out more about reducing your Auto or Homeowners insurance premiums while maintaining your necessary coverage, contact your Independent CIG Insurance Advisor, who will be happy to assist you.

Corporate bailouts, business closures, rising unemployment... The state of the US economy is causing many people to cut costs where they can, including dropping or reducing critical Auto and Homeowners coverage.

The good news is that there are effective ways to reduce your insurance costs and still keep the insurance protection you need. Consider the following general rules before making changes to your Auto or Homeowners insurance:

  • Maintain or increase Liability protection. Medical expenses for injured parties can easily exhaust your Auto or Homeowners Liability limits, leaving you with the financial burden of paying the remaining bills. It costs very little to double or even triple your Liability limits to ensure that you're protected, but it can be very expensive to be uninsured.
  • Maximize your Uninsured Motorists (UM) Liability coverage. The Insurance Research Council predicts that by 2010 the number of uninsured drivers will increase to 16%. This means if your vehicle is struck by another driver, the chance will be greater that they are not insured. This could mean that you will be forced to pay for any injuries you, your family or your passengers suffer. Keeping your UM coverage equal to your Bodily Injury limit maximizes your UM coverage and gives your family the same protection you provide for injuries suffered by others.
  • Update the Replacement Value of your home. Because of falling market values, it's tempting to lower the Replacement Cost coverage on your home; however, doing so may unintentionally underinsure your home. Construction costs actually increased by 3-4% nationally in 2008 and 2009. In addition, new building codes and demolition costs increase rebuilding costs after a loss but do not influence the market value. Before lowering the replacement value of your home, discuss the matter with a CIG Insurance Advisor. They're there to help.

Here are some of the ways you can reduce your Auto and Homeowners insurance premiums:

  • Raise your deductible. Doing so can reduce your insurance premium by as much as 40%.
  • Insure both your vehicle and home with CIG. You can save up to 25% on Auto insurance and up to 10% on your Homeowners insurance premiums with CIG's HOME+AUTO™ Coverage Advantage. Your discount can be applied as long as you insure the companion policy with us within six months. This discount is available even if you rent your primary home with CIG and insure it under the HOMEOWNERS 4 - CONTENTS BROAD FORM HO-4 (04-84) or carry a CIG FARMOWNERS policy.
  • Adjust your annual or commuting mileage. By driving less, you can save up to 24% over your six-month policy period and help the environment!
  • Take an Accident-Prevention course. If you are 55 years or older, have a clean driving record and take an accident-prevention course approved by your state, you can reduce your six-month Auto insurance premium by up to 5%.
  • Review your credit score. There's no downside to submitting your most recent credit score to CIG for review. Your new credit score may qualify you for a lower premium rate. If it doesn't, we will use your original score and discount. This feature is not available in California or Nevada.
  • Turning 50? CIG Homeowners age 50 or older may qualify for our 5% Century Age Credit. You are eligible for this discount if you are 50 or older and the sole owner of the property or the combined ages of all resident owners is 100 or more.
  • Request your annual insurance review. Since your last annual insurance review, did you install a central alarm in your home? Replace your wood-shingle roof with a tile roof? Install an alarm on your vehicle? Any of these changes may qualify you for a discount on your Homeowners or Auto insurance.

To find out more about reducing your Auto or Homeowners insurance premiums while maintaining your necessary coverage, contact your Independent CIG Insurance Advisor, who will be happy to assist you.

CIG DELIVERS MORE. CONTINUOUSLY.™