Cutting costs: Saving on insurance

By TEDDYE SNELL

These days, it seems everyone is looking for ways to save money.

Some may cut out entertainment, others may reduce the use of their vehicles.

Others still look for more innovative ways to save money. One way could be to review insurance policies - homeowner or renter, vehicle and life insurance - and shop around for better rates.

According to Chemain Evans, writer for SimpleJoe.com, and expense-tracking Website, by not shopping around, many people end up overpaying for insurance by as much as hundreds of dollars.

"Most of us have a hard time getting excited about shopping for different insurance, but a little time invested can go a long way in saving you money," said Evans. "Of course, the cost of premiums isn't the be-all-end-all; quality of service, quick response to claims, and financial soundness are all important factors to consider."

Shopping for insurance can be time-consuming, but in the end can save a substantial sum. Evans recommends asking friends, checking the Yellow Pages, or calling the state insurance department for recommendations. Insurance information for Oklahoma can be accessed via the Internet at www.naic.org/state_contacts/sid_websites.htm.

"This will give you an idea of price ranges and tell you which companies have the lowest prices," said Evans. "But don't consider price alone. The insurer you select should offer a fair price and deliver the quality of service you would expect if you needed assistance in filing a claim. So talk to a number of insurers to get a feeling for the type of service they give. Ask them what they would do to lower your costs. Check the financial ratings of the companies with AM Best or Standard and Poors."

It's also important to compare other insurers against current policies. When comparing companies, have your current policy handing when calling so you can compare apples to apples. If you do find a better policy, make certain it's in effect before dropping the old one.

Bronwyn Duncan had her policies with Progressive - a company that is well-known for it TV ad campaigns featuring lower prices. However, when she shopped around, she found by insuring her home and car with a local agency, she would save hundreds annually.

"With my insurer, if you have both your home - or renter's - insurance and your car insurance listed, if you go three years without a claim, you get 25 percent of your premium back in a lump sum," said Duncan. "I dropped Progressive and am saving over $600 a year in premiums."

Duncan has her insurance with John Rozell, a local agent for American National, and he confirmed the premium bonus.

"We have what's call a cash-back claim fund and you get 25 percent of your annual premiums back if you have no claims in three years," he said. "And that's not handled by a rebate on premiums, it's handed to you in a check. Our customers love it, and I'm really excited, because at the end of this year, I'll qualify for my check from the same fund."

Evans recommends using the same insurer for multiple policies for the same reason.

"Whenever possible, buy your home and auto policies from the same insurer," he said. "Some companies that sell homeowners, auto and liability coverage will take 5 to 15 percent off your premium if you buy two or more policies from them. But make certain this combined price is lower than buying different coverages from different companies."

Longevity is also key when saving on premiums. If you've kept your coverage with a company for several years, you may receive a special discount for being a long-term policyholder. This is why it's important to compare rates against your current policy.