Do You Know What Affects The Rate You Pay?
Your insurance premiums do not have to be just another bill you pay that you are powerless to understand and affect. Your premiums are not calculated with rocket science; there are a few factors that contribute to the rates you pay. They are:
- Your Deductibles & Limits: You can dramatically alter your premiums using your deductible and limits. Lowering your policy’s limits could save you money, but it could also leave you uncovered in an instance where you would need insurance. Similarly, increasing your deductible can bring your premiums down, but you may not find it ultimately worth it when you have to pay a hefty deductible to get your coverage to kick in.
- The Economy: When times are tough, they are tough for insurance agencies too. They are invested in the financial markets and are affected by their fluctuations. Furthermore, when the economy is struggling some people will drop coverage because they simply cannot afford to carry it. To keep their agency in the black, some could charge higher premiums during difficult financial times.
- Your History: When your agency insures you, they assume your risk. The greater a risk you are, the more they will need to be compensated for taking you on. Consequently, if you have a history of filing many claims or hazardous behaviors, the agency will bump up your premiums. The more likely you are to need your coverage, the more you are likely to pay on your premiums.
An independent insurance agency can help you fully understand your premiums so you can have insight into how to keep them low. To work with an agency committed to this kind of service, contact The Misner Agency. We operate in Bloomingburg, Livingston Manor, Westtown, and Woodbourne, New York.
