Combating the Cost of Insurance Premiums

No one likes to pay a high price for insurance premiums, but there are ways to reduce the cost without sacrificing quality.

One of the best ways to reduce cost is to shop around. Choosing an independent insurance agent is a great way to find the lowest rates for all of your insurance needs. Independent agents are not bound to one company; therefore, they are able to shop different companies to find the most complete and affordable policy to meet their clients needs.

Raising deductibles and seeking out discounts help combat prices for both homeowners and auto insurance. Those who can afford a higher deductible may be wise to do so in order to lower their premiums. Looking for discounts are often an easy way to reduce rates as well. Some insurance companies offer multiple-line discounts for customers who purchase both home and auto insurance from them. Installing new locks, alarms or other security devices in your home and auto are also ways to qualify for discounts.

Tips for Homeowners:
•Step up Security. Install deadbolt locks and burglar alarms.
•Increase Safety. Have working smoke detectors, and install fire extinguishers, sprinklers, or fire alarms.
•Reinforce Property. In disaster-prone areas, add features such as storm shutters and shatterproof glass.
•Modernize Older Homes. Update heating, plumbing, and electrical wiring in older homes to reduce the risk of fire or water damage.
•Consider Replacement Cost. Be sure to exclude land value when calculating estimated replacement cost. It is not likely that the land will need to be replaced in the event of a disaster.

When building a new home, take insurance premium cost into consideration. Remember when building in an area where the cost of building materials and labor is high, that replacement cost is a factor. Using building materials suitable for the region's weather conditions can save on premiums. It is also important to know that rates can be reduced in areas where there is a professional rather than a volunteer fire department, and building near a fire hydrant can save as well.

Tips for Auto Owners
•Choose Safety. Purchase vehicles with anti-lock brakes, air bags, and other safety devices.
•Increase Security. Install alarms, electronic locks, disabling devices and theft-tracking systems.
•Change Driving Habits. If you must commute, use public transportation or carpool if possible. Using a company vehicle for work-related travel can also save.
•Be a Good Driver- a driving record that is free of tickets or accidents will often qualify for a good driver discount.
•Be a Good Student. Often, companies offer discounts for students with good grades.
•Study Defensive Driving. Senior Citizens and drivers with violations sometimes can reduce rates by taking defensive driving courses.

When considering these options, your insurance agent should act as your consultant, advising you of what discounts are available and of what steps you should take to qualify for those discounts.

The Professional Independent Insurance Agents of Illinois is an association representing independent insurance agents throughout the state. PIIAI membership is comprised of 1,500 insurance agencies representing 12,000 licensed independent agents engaged in all facets of the insurance industry, including property, casualty, life and health. Its members are businesses that offer customers a choice of policies from a variety of insurance companies. In addition to serving the professional needs of members, PIIAI works for the betterment of the insurance industry through legislative and consumer awareness programs. The PIIAI is headquartered in Springfield, Illinois. Visit PIIAI's consumer website at www.ChooseIndependent.com or agent website at www.piiai.org.