‘Stretching Your Dollar’ by saving money on insurance in minutes

Stretching Your Dollar

INDIANAPOLIS —  Every year, Americans lose out on millions of dollars by not doing one simple thing: shopping around for new insurance. 

That includes coverage for your home, car and whatever you have that’s valuable. It may sound time consuming and complicated, but it can take just a matter of minutes with a simple phone call or office visit.

“The most substantial discount is the home and auto discount bundle, so it’s very important to make sure you’ve got both of those with the same company,” says Ashe Abebe, an independent insurance agent. 

You can save 20% to 40% by bundling, which can amount to thousands of dollars a year in savings compared to having separate policies. Plus, it’s often easier to have your insurance covered by one company. 

You should also know what is and isn’t covered on your policy ahead of a storm, an accident, or some other event.  In terms of homeowners insurance, if you already have a newer roof, it can be a big discount.

“Even if your insurance company approved a claim, and you got a new roof, it’s still important to then tell your insurance agent that your roof has been replaced and updated so they can update that discount on your homeowners policy,” says Abebe.

As far as car insurance, many companies gave a COVID-19 credit of 15% to 20% for the months of April and May.  They did so because they knew people were driving less. If you haven’t received those credits or if you are unsure about that, reach out to your insurance agent ask them.  Some companies are even extending the discount into June.

Here’s another aspect of insurance that’s very important to note: Many homeowners have spent their COVID-19 downtime doing remodeling projects. And if you’ve added substantial value to your home, inside or out, tell your agent.

“If you don’t tell your agent ahead of an event, that’s likely to be a very painful process if you are in a claims situation, and that’s not factored in on your current insurance policy,” says Abebe.

When choosing an insurance company, shop around. Ask family or friends who they know and trust. Abebe says, as an independent agent, he has more companies to choose from. They are also highly rated with strong financial backing.

“Find an independent agent, someone that’s going to work for you. That’s what our job is, it’s not to work for the company,” says Abebe.

If you’re worried about contacting your previous insurance company and mortgage lender after switching, you probably don’t need to worry very much. Most insurance providers will just need a little information from you about your previous company and lender, and will take care of the rest for you.

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