Frequently Asked Questions - Managing Policy Premium Increases
Policy increases are often related to changes your insurance company makes to either individual policy holders, lines of business or specific rating territories. While you cannot directly affect these changes, there are a number of elements – policy limits, discounts, pay types and deductibles - that you can review to make changes that may positively affect the bottom line premium. Let's take a look at each of these components .
S.M.A.R.T. Question from a Foy Agent- “After reviewing your coverages, I noticed that you are currently insured for the state minimum for liability coverage. When was the last time someone reviewed those limits to make sure they are at least enough to help protect your assets in case you experience a loss? “
S.M.A.R.T. Service from a Foy Agent -“One of the most important things we can do to offset any price increase is to review your policy for any eligible discounts. Each of these discounts can help to reduce the premium without affecting the value of your coverages. Is this a good time for us to review your policy or would you prefer we set up another time in the next couple of days to apply those changes?”
S.M.A.R.T. Question from a Foy Agent - “I noticed that you currently pay your insurance premium by mailing a check to the insurance company after they send you a monthly bill. If we could set up that back to automatically be sent to the bank - or even to have the amount paid in full – would you be interested in the savings we could apply to your renewal?”
S.M.A.R.T. Service from a Foy Agent - “After reviewing your policy limits, discounts and the way you pay your premium, another option we have to help offset the premium increase would be to increase your deductible(s). Before considering that, I want emphasize that, if you have an accident or need to report a claim, increasing your deductible would also increase the amount of money you would have to pay before the insurance company would pay out the claim. Would that be an option you like to pursue as a way to reduce your premium?”