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I have a different insurer. For several decades, they were fine with a $500 deductible, a relic of how long l had been with them. Then I had a small kitchen fire that ran about $5k. Not only did they jack up my rates for the next 3 years, but they increased my deductible to 1%. That is 1% of replacement cost, not 1% of value.
When the deductible hit $2500 for a house worth $150k, I decided I had to put a stop to the ever rising deductible. I am a senior citizen, and $2k seems reasonable. It costs me an extra $25 a year.
Insurance companies HATE low deductibles because it increases the likelihood you will file a claim. Someone has to steal A LOT to make it worthwhile to file a burglary claim with a higher deductible.
I prefer high deductible and low premiums. Just be frugal with.....everything in your life....and in the really, really, really, off chance that you ever do have to pay a deducible for anything you will have more than saved for it by having very low monthly payments all along.
For example, my car insurance with USAA is $51/month, and I only pay that because my state (and I think they all do) require me to have at least some insurance. The amount that I don't spend beyond that more than pays for my next car over time. Come to think of it, I've never had a car payment either. I have no idea what my deductible is, but it doesn't matter when the monthly payment is so low.
It's kinda like when people ask about credit card interest. Does it matter if it's 16% or 18% or 22% or whatever it is if you fail to pay for months at a time? It could be 172% for all I care because I've always paid 0%, which is what happen when you pay your bills ever couple of weeks.
I prefer high deductible and low premiums. Just be frugal with.....everything in your life....and in the really, really, really, off chance that you ever do have to pay a deducible for anything you will have more than saved for it by having very low monthly payments all along.
The trouble with that is that there isn't enough of a discount to go to $1000 deductible or higher. And for the average consumer coming up with $1000 or more to fix your house or your car can be quite painful.
In some states, some insurance companies will not do any other insurance unless they get your car insurance. (I dont know but maybe car insurance is more profitable??)
In my state Allstate is very high compared to others so I do not use them.
I had my car and homeowner's bundled (not Allstate). In September of last year, I gave up driving and no longer own a car.
When I called my agent to request a refund of my last quarter premium, I was told that my homeowner's was not entitled to a discount and I had to pay another $100.00 for the last quarter.
I did get the refund on the car insurance, along with a harsh letter from the insurance company informing me that I would not be able to get car insurance from them in future.
Shop around. But be aware that cheaper isn't necessarily better.
Shop around. The bundle option is not foolproof or all-encompassing. My youngest just bought her first house and she mentioned her homeowner's quote from her auto-policy company and I told her "NO". She got a quote with the same provisions and deductibles from another big name for 33 percent less.
Don't assume any insurance company rewards loyalty with lower rates. They measure risk and hazard probability on you AND the physical property. Look how they have sold all of us on things like "accident forgiveness"--making you feel like you have to earn something you are paying for in a premium already. You don't forgive me of anything; you insured me, and that entitles me to my end of the policy provisions if I file a claim. End of rant
Shop around. The bundle option is not foolproof or all-encompassing. My youngest just bought her first house and she mentioned her homeowner's quote from her auto-policy company and I told her "NO". She got a quote with the same provisions and deductibles from another big name for 33 percent less.
Don't assume any insurance company rewards loyalty with lower rates. They measure risk and hazard probability on you AND the physical property. Look how they have sold all of us on things like "accident forgiveness"--making you feel like you have to earn something you are paying for in a premium already. You don't forgive me of anything; you insured me, and that entitles me to my end of the policy provisions if I file a claim. End of rant
Yes, you are paying for it but I don't see that anyone should feel like they have to 'earn' anything. I bought a policy years ago through Kemper on my car. They were the only insurer at the time who paid you the replacement cost of a car, not the book value. So if you totaled it, you got a brand new car. But I didn't feel like I was 'earning' anything. And I knew the premium was higher.
Shop around for a different insurance company. No matter who you use, however, you will get better rates if you bundle home and auto, so it just makes financial sense to do that.
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