RMIIA News Releases

7951 E. Maplewood Avenue, Suite 110
Greenwood Village, Colorado 80111
Serving Colorado, New Mexico, Utah & Wyoming

Contact: Carole Walker, Executive Director
303-790-0216 or toll free 800-355-9524

Pinching Insurance Pennies Can Help Consumers Tighten Their Belts in Bad Economy

July 31, 2008 – Clipping coupons and driving less are just a few ways people are trying to carve out some savings in their household budgets in the face of bigger bills on everything from milk to gas.  But, one key area of their personal finances that they likely are overlooking is insurance.  People need to assess their budgets and review their car and homeowner insurance choices. It's estimated that most consumers could save more than 20% on insurance if they took simple steps such as raising deductibles, comparison shopping and taking advantage of discounts.

“Ask yourself some simple questions such as: How high are my deductibles? Does my insurance company know my teen has good grades?  Could a defensive driving course lower my rates,” says Carole Walker, Executive Director of the Rocky Mountain Insurance Information Association. “However, keep in mind that while cost is a big determining factor, you should also be asking yourself about value for your insurance dollar and what's the right insurance for you. After all, the only reason you have insurance is so that it will provide what you need when you need it the most.”

Free Financial Software & Consumer Insurance Guides

• To get you started, the insurance industry now has free downloadable software that helps you inventory your personal financial picture and track your progress in attaining your financial goals.  It's a great tool to take with you to an accountant or financial planner. http://www.myfinancialhouse.org

• RMIIA has free consumer guides that help steer you through auto and homeowner insurance policies: Colorado Auto Insurance | Homeowners

Ways to Save Money on Auto Insurance

1. Shop around. Prices for the same coverage can vary by hundreds of dollars from company to company, so it pays to shop around. You should get at least three different price quotes. But, don't shop for price alone. Talk to a number of insurers about what they offer and what they would do to lower your costs. Don't forget to ask about claims service.

2. Assess your deductible. Deductibles represent the amount of money paid out-of-pocket before you make a claim. By requesting higher deductibles on collision and comprehensive coverage, you can substantially lower costs.

3. Check your vehicle's safety & security rating. Before you buy a new or used car, check into insurance costs. Many companies now offer a discount for vehicles with higher safety and crash test ratings. Cars that are expensive to repair or are favorite targets for thieves also have much higher insurance costs.

4. Take advantage of good credit. Many companies offer better rates to customers who have good credit histories. Find out if you can save money with a good insurance score. For information on credit, please visit Associated Credit Bureaus, Inc.

5. Buy vehicles with safety devices. You may be able to take advantage of discounts on some types of coverage if you have automatic seatbelts, airbags or anti-lock brakes.

6. Inquire about Other Discounts. Some insurers offer discounts for carrying more than one policy (home, auto, multiple cars), no accidents in three years, drivers over 50 years of age, driver training courses, anti-theft devices and good grades.

7. Check out defensive driving & drivers educations courses. Some insurers provide discounts if drivers brush up on their skills. Teenagers may also receive discounts for taking a certified training course.

Ways to Save Money on Homeowners Insurance

1. Install safety & security devices. You can often save up to 15 percent on you premium with deadbolt locks, fire extinguishers, smoke alarms, burglar alarms and fire alarms that alert your local police and fire stations. Check with your agent to see if your insurance company has specific requirements to qualify.

2. Increase the deductible on your homeowners policy. Increasing your out-of-pocket payment from $250 to $500 or even $1,000 can save you money on your premium and it will discourage you from making small claims, which could put you at risk for being non-renewed.

3. Check into a multi-policy discount. Some companies offer a price break for having more than one type of policy with the same company.

4. Maintain good credit. Many companies provide discounts or consider good credit as one of the factors when selling new policies, so it can really pay off to manage your personal finances.

5. Invest in hail and fire resistive roofing products. Your roof is the most vulnerable part of your home and many companies consider the roofing materials into the premium you are charged. Depending on where you live, some companies charge a percentage, rather than a dollar deductible or surcharge on a roof made out of high-risk materials, like wood shingles or shakes.

6. It pays to shop around for insurance coverage. Keep in mind that the cheapest policy is not necessarily the best. Selecting a company that provides good customer service and one that fits your personal needs is critical, especially when it comes time to file a claim.

Log on to www.rmiia.org for more information.

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Rocky Mountain Insurance Information Association is a non-profit consumer information organization. Affiliated with the Insurance Information Institute, RMIIA has been serving consumers and the media since 1952.