A Good Time To Review Your Insurance…

As an Insured, it is good practice to shop around your insurance as part of your annual financial review.  Best case scenario, you could end up saving some money as a result!  Consumer advocates are stating that this is probably the best time to look into it for the following reason:

The Consumer Federation of America is arguing that insurance companies are receiving a windfall as the Tax Cuts and Jobs Act trims corporate tax rates to 21 percent from 35 percent.

In a Jan. 23 letter to the state insurance commissioners, the consumer advocacy group asserted that insurers would garner a $25 billion “windfall” from tax savings and this should result in lower premiums for customers.  Please note: The insurance business is regulated by the individual states and companies must apply for rate changes.

According to J. Robert Hunter, director of insurance at the Consumer Federation of America, “If you raise the tax rates, the investment income drops and insurers file rate increases.  When their taxes go down, they need less premium, so their rates must come down.”

Be pro-active.  Here are some things YOU can do to:
Review your coverage:  Talk to your agent and see if you’re paying for insurance you don’t need.  For example, removing comprehensive and collision coverage on an old car could save you some money.  You can also raise your deductibles on your homeowners’ policy, however; be sure you can cover the expense in the event of a disaster.

Bundle your policies: If you bundle your homeowners and auto coverage at the same insurer, you can save money that way.

Shop around: Gather quotes from different insurers so you can negotiate with your current carrier.

Make home improvements: Protect your property from loss.  For example, installation of  a new roof, fencing around pools and installing alarm systems can help reduce your rates.

We hope this article was helpful.  Please feel free to share with all your family and friends who are looking to save on their insurance.  If you need insurance, give us a call and we’ll do our best to meet all your insurance needs.