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Cheap Home Owner Insurance - Self Insure And Save Money
The whole concept of insurance revolves around protecting theassets of an individual from financial loss due to anunpredictable event. The reason that we purchase insurance is toprotect ourselves from financial disasters. We rely upon theinsurance company to take on the risk in exchange for thepremiums that we pay. The average consumer spends very littletime thinking about insurance purchases. The insuranceprofessional is expected to do most of the thinking for us andadvise us on what is best. There is a simple principle that can be applied to almost all ofyour property and casualty insurance purchases that will saveyou premium dollars. Self insuring is that principle. The smartinsurance shopper eventually grasps the concept of selfinsurance. The whole idea around self insurance is usingdeductible options and eliminating unnecessary coverage. Thedays of the $100 Collision deductible on auto insurance isfading fast and it should. The higher deductible saves you inpremium dollars. That is what we call self insuring. When youchange your deductible from $100 to $500 you are taking on therisk for the first $500 of physical damage. You can do the sameon the homeowner's policy. You will lower your premium and stillbe covered for any major loss.You will save a ton of money in the long run. You don't haveenough claims over a lifetime to warrant having a lowdeductible. You are paying the insurance company money forservices they may never perform. You will save thousands ofdollars by keeping your deductibles $500 or higher.There are a lot of optional coverage's in auto and homeownersinsurance that you may want to eliminate to save money. Moststates have tort options. Tort is your right to sue. Full tortverses limited tort can sometimes be a difference of 20% in yourauto insurance premium. Rental reimbursement and towing benefitsare added onto auto insurance all the time. You may want to selfinsure for these and save premium dollars as well.The insurance purchase can be easier and more affordable if youcan grasp the mindset of self insuring. Your agent will welcomeyour thinking on this because most agents think self insuranceis best for their customers.
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