Insurance Saves Your Money

Insurance Saves Your Money

Insurance saves your money if you are willing to follow one simple rule. That rule is so simple that all high schools students should have to take a one day course in insurance in order to graduate.

Let’s face facts, you have to have insurance today. Auto insurance, for example, is mandated by every state in the Union. Try getting a license or registering your vehicle without proof of insurance and you’ll know exactly what I am saying.

Given this is true, wouldn’t you like to know how to pay the least amount of premium you possibly could? The answer has to be yes given none of us want to pay dollar for the same product we could get at a lower price.

If you own a home, you probably have homeowner insurance. The biggest reason people have homeowner insurance is it is mandated by the lender. If you present proof of HO insurance at time of closing, the lender will refuse to fund the loan. That kills the purchase on the spot.

I probably don’t have to write another word because you have already deciphered the one simple rule. However, if you haven’t, let me ask you if you could purchase all of your insurance at the lowest possible cost, would you?

In my opinion you answered yes. After all, the money looks better in your wallet than it does in some insurance company’s bank account.

Mind you, this one principle works for all types of insurance. It works because all insurance, except the most specialized like dynamite handler insurance for example, is based on a capitalist principle.

That principle is competition. Competition fuels the premium pricing. It isn’t the only factor influencing premium pricing but it is a significant factor. Competition forces the insurance companies to set their rates based on their claim experience.

There is more to the story but why go there when the one simple rule to have insurance save your money is to shop your insurance needs among all the carriers in your local area. That means getting quotes from agents who write for specific companies as well as agents who write for multiple companies.

If you do this one little gambit, you will learn that all insurance premiums are not created equal. And, you may even learn an important lesson. If you can get the lowest possible premiums, you certainly be able to do the same for other items in which you have an interest. Insurance saves your money if you follow one simple rule. Since you now have the rule, happy savings.