Summertime is finally here in Lancaster Pennsylvania! The kids are out of school and many families are getting packed up to go on vacation. Unfortunately, this year, vacations might cost a little more than they have in the past due to the pesky inflation that seems like it keeps on going and going. So, this year, we thought we would give you 3 tips to save on your insurance for the 2023 summertime to hopefully give you a little more to spend on your vacations, on your trips, and on your summer excursions.
Tip #1 – Shop Locally
The first tip we have to help you save on your insurance this summer is to shop locally. We love shopping locally and supporting our shops downtown Lititz and Lancaster so why not carry this into your insurance? The adage we have in insurance is that if you see your insurance company on tv, you need a new insurance company. There are two reasons for that. The first reason is that somebody must help pay for their marketing budget, which is often the policyholder. Insurance companies are profitable organizations and marketing helps bring people in, which is great, but you contribute to that marketing budget as a policyholder. The second reason is that many of those insurance companies are national companies, that span the entire country. This means that they are exposed to all different types of risks, such as hurricanes, tornadoes, and wildfires. If you shop locally with a regional insurance company, such as Erie Insurance, the company is only exposed to the risks that are associated with that region. For example, Erie Insurance only writes policies through independent agents in the northeast region of the United States, such as Pennsylvania, New York, and Ohio. Given this region, there is not much risk involved with natural disasters, so the rates for the policyholder should be relatively lower compared to the rates offered by national insurance companies. So, find a local independent insurance agent that can shop regional insurance companies to help you save on your home and auto this summer.
Tip #2 – Maximize Applicable Discounts
Another tip to help save you money this summer is to ensure that you are maximizing your discounts on your insurance policies. Now, not all discounts are created equally. Some insurance companies put discounts for everything it seems. So if it’s cloudy today, you might get a cloudy discount. If you have a purple car, you might get a purple car discount. A lot of times those discounts are a little hokey, so you want to look for big-time discounts, such as a multi-policy discount. When you combine your different insurance policies, such as home, auto, RV, boat, etc., under one company, you will often receive a discount for bundling those policies under one insurance provider. The more policies you have with an insurance company, the more savings they are going to give you and the better off you will be. A lot of times it is cheaper and offers better coverage than having them split across different insurance companies. So, if you have different insurance companies insuring your different policies, it might be time to consider switching all your policies over to one company to receive that multi-policy discount.
Some other discounts you might find are good driver discounts or good credit score discounts. If you are a younger or older driver, you may also be eligible for discounts if you have completed any safe driving courses. So, talk with your agent about which discounts, if any, you might be missing out on, and which ones might fit you today.
Tip #3 – Increase Your Deductibles
The final tip we have for you is to increase your deductibles. The higher your deductible, the lower your premium will be, and vice versa. Take car insurance for example. If you have a collision deductible of $5,000, you are responsible for self-insuring the first $5,000 worth of damage to your vehicle. The insurance company knows this and likes the less risk involved for them, which means they will lower your premium. A lot of people do not necessarily want to have $5,000 sitting in their bank account to ensure that those losses can be covered by themselves, so they opt for lower or no deductibles. In this case, if anything were to happen to your vehicle, you would pay little to nothing and the insurance company would pay for most of the damage. Since the insurance company is taking on the full risk, you will receive higher premiums.
One suggestion we have is that if you own an older vehicle that already has some dings and dents and you do not care about it, we recommend raising that deductible a little bit. This way, you can save on your premiums and put some money back into your pocket.
Another suggestion we have is to raise your comprehensive deductible but maintain the full glass coverage. Most comprehensive claims are glass claims, meaning a rock might have gone through your windshield or there is a nick or a full crack in your windshield. So, you can increase your comprehensive deductible, which would help save on your premium and protect you from more serious things like a tree falling on your car or if it’s fully vandalized. The small glass claims will still be fully taken care of at a small or no deductible.
So, these are the two ways to get around the deductible game. See what option(s) fit you the best and if you like higher deductibles, do that, and save some money on your yearly premium. If you don’t want to pay out deductibles, you might have a higher premium, but when the time comes that you need to use your insurance, you won’t pay as much out of pocket.
There you have it, 3 tips to help you save money on your insurance this summer to afford those family vacations! First, you want to shop locally by finding a regional insurance carrier through an independent agent. Second, you want to maximize all the discounts that apply to you. And lastly, increase your deductibles on certain things, such as your home or an older vehicle to save some money on your yearly premiums. We wish you all a great summer and enjoy those family vacations!