check your home, auto, and plp insurance policies

Every few months to year I take a look around to see if anyone can give me a better rate on my auto & renters’ (home) insurance. This month, after 3 years, I found a carrier who could knock about $60 a month off my payment *and* give me more coverage.

Interesting things I learned in this process:

• you want a Personal Liability Protection – “umbrella” – policy
  • provides coverage over-and-above the limits on other policies you hold
  • follows you world-wide (at least with my carrier)
• individually-scheduled items on a renters’ (or home) policy are covered even if something happens away from home
  • say you have your wife’s engagement ring individually-scheduled
    • if she loses it at the beach, it’s still covered
    • if it’s stolen from home, it’s still covered
  • the cost of adding individually-scheduled items is a fraction of their cost to you if something goes awry
• max-out your auto policy’s limits – you’ll get better rates
  • if you carry state minimums (25k/50k in KY), you will have a higher rate than if you increase your coverage levels (it was a $300/year difference for me (not that I’d ever take minimums, but it was still interesting)
  • the insurance companies factor-in your “insurance intelligence” when giving a quote
    • if you pay for more coverage, you’re “smarter” about insurance, and less likely to have a claim
• the company you’ve been using for years takes all the factors in your driving, credit, and other relevant histories and calculates your risk to them differently
  • so shop around!

I was with my last carrier since moving to KY in 2010. I don’t know how long I’ll have my new one, but for now, increasing my coverage, expanding its scope, and reducing my payments are all great.

I went from 2 to 3 policies (including the new PLP), and am pretty excited (though, of course, I also hope to never need them).