Author Topic: Insurance went up - taking another look at the policy  (Read 596 times)

MrsSpendyPants

  • 5 O'Clock Shadow
  • *
  • Posts: 87
Insurance went up - taking another look at the policy
« on: June 20, 2020, 07:49:24 PM »
My insurance broker called me last week to say that my insurance renewal should be in the mail but not to pay is it as they were shopping it around. I should have known that meant it went up. Got the policy today and it went up 10%! While I am shopping this around, should I make any changes to my policy? Located in Pennsylvania

1. Home - 1386 annually, 1k deductible, paid 425k for home
-Home will be paid off in December - does that change anything? It also had the roof and hvac replaced in the last three years so not a lot of end of life items.
-Property location limit - 962k (200% of estimated residence value), does that seem high? We do have 6 outbuildings on the property
-Fair rental value and identity fraud included
-Mine subsidence of 482k
-Personal liability of 300k
-Biological irritants, contaminants or spores 50k included
-Medical expenses 5k

2. First car - 2009 paid off Honda Civic - 888 annually
This car is barely used as we carpool to work when we have to go in
-Bodily injury: 100k per person, 300k per accident
-Property damage: 100k per accident
-Full Tort
-Uninsured motorist, stacked: 100k/300k
-Underinsured motorist, stacked: 100k/300k
-Added first party medical: 10k
-Comprehensive deductible: 250 - feels like I should make this much higher right?
-Collision deductible: 500 - increase this as well correct?
-Towing $75

3. Second car - 2015 paid off Subaru Forester - 756 annually
Same coverage as above. Any idea why this one would cost less if it's a more expensive car that is used more often?

4. Personal 1 million umbrella, 235 annually
-1 million each occurrence, 2 million annual aggregate limit

What changes should I make to my policies as I shop them? And are these reasonable prices? We've been with the company for four years now and it goes up every year!

Gin1984

  • Magnum Stache
  • ******
  • Posts: 4855
Re: Insurance went up - taking another look at the policy
« Reply #1 on: June 20, 2020, 08:03:07 PM »
I'd get rid of collision, comprehensive and towing.

seemsright

  • Bristles
  • ***
  • Posts: 301
Re: Insurance went up - taking another look at the policy
« Reply #2 on: June 20, 2020, 08:11:52 PM »
those are CRAZY prices.

Here is what we do: We have a agent that hubby and I have been with since we were young. We make him WORK to keep us. Every two years he gets to brush up on his opportunities to sell us stuff. He is a Farmers agent, he can sell way more than what his sign says. We are currently after months going back and forth paying $1300 a year for everything. I do not know the ins and outs of the policy...but it is okay. But that is our house, our both vehicles, and our tent trailer.

And yes the house paid off does change things at least in our state of Oregon. I know insurance is different per state.  We did a bunch of research and quotes. We have friends who have a family farm of Filberts and after we saved on insurance...they pressed their broker to look at their policy and they were able to save a boat load. They were so thankful that we mentioned that we were looking at our insurance and they did the same.

I am going to go out on the limb and say you could save. Look at different insurance options. You are NOT stuck with who you have. We find we have to change providers every 2-3 years

former player

  • Walrus Stache
  • *******
  • Posts: 5902
  • Location: Avalon
Re: Insurance went up - taking another look at the policy
« Reply #3 on: June 20, 2020, 08:15:52 PM »
What you paid for your home is irrelevant, what is relevant is the rebuilding cost for what's on the land.  So work that out and see whether you can lower the amount your property is insured for.

MrsSpendyPants

  • 5 O'Clock Shadow
  • *
  • Posts: 87
Re: Insurance went up - taking another look at the policy
« Reply #4 on: June 20, 2020, 08:23:38 PM »
What you paid for your home is irrelevant, what is relevant is the rebuilding cost for what's on the land.  So work that out and see whether you can lower the amount your property is insured for.

Any idea how I can figure this out?  I have no idea what homes cost to build around here.  Thank you for the suggestion!

American GenX

  • Bristles
  • ***
  • Posts: 498
Re: Insurance went up - taking another look at the policy
« Reply #5 on: June 20, 2020, 10:31:41 PM »
1. Home - 1386 annually, 1k deductible, paid 425k for home

That looks good to me.  My house is valued by my insurance company for about half that amount for rebuilding cost, and it's actually worth considerably less that that, and with the same $1K deductible, my insurance is just under $1K/yr, despite a multiple policy discount, no claims discount, and longevity discount.
« Last Edit: June 20, 2020, 10:35:00 PM by American GenX »

Aunt Petunia

  • Handlebar Stache
  • *****
  • Posts: 1252
Re: Insurance went up - taking another look at the policy
« Reply #6 on: June 21, 2020, 06:39:01 AM »
Agree to drop the collision and comprehensive, at least on the Honda  (or sell the Honda, since you barely use it).

You could also increase the deductible on your home for some premium savings, I think mine is 2k. Check with your mortgage company for what they allow, and price out the cost savings over time (for example I would have to have a claim every 7 years for the cost difference between a 1k and 2k deductible to be worth it).

MissPeach

  • Bristles
  • ***
  • Posts: 313
Re: Insurance went up - taking another look at the policy
« Reply #7 on: June 22, 2020, 03:34:14 PM »
I would check the mileage on the second car you barely use and see if they have any programs for that. I've found some companies have discounts if the car isn't a commuting car, etc. I know a guy who switched to bike commuting and was able to cut insurance in half due to the mileage.

As for the comp/collision I would at least increase the deductibles. I would consider dropping it if you're OK with having to cover the cost to replace them. My car is paid off but new so I keep it as I don't want to take out the cash to replace my only vehicle at its current value. I don't like dropping it until the car is worth $5K or so but to me that's when the policy amount becomes worth the payout risk. I seem to pay more for liability here.

Sibley

  • Magnum Stache
  • ******
  • Posts: 4652
  • Location: Northwest Indiana
Re: Insurance went up - taking another look at the policy
« Reply #8 on: June 23, 2020, 03:23:33 PM »
Auto insurance can vary by car based on the incidence of theft. If Civics get stolen more, then higher insurance.

I too would recommend selling the vehicle you barely use. You're paying for insurance, registration, and depreciation/deterioration costs (noncash until you have to fix something). Why keep it?