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Great 8 Tip #5 - Don't Submit Small Claims
Jeff Ryan - CLU, ChFC, AIA, CIC, CPCU
July 25, 2024
This Great Eight strategy goes right along with #4 Proper Deductibles.
It's essential to establish up front that all insurance companies share claims information.
The tool that insurance companies use to access claims history is called a CLUE report (short for Comprehensive Loss Underwriting Exchange).
Nearly every major insurance company uses the data contained in your CLUE report to develop auto (and home) insurance premiums. That information can dramatically affect what you pay and your ability to shop for insurance elsewhere, especially in our current insurance market.
The impact of a CLUE report on auto insurance rates is simple. The fewer claims one has, the lower one's rates will be. However, it is important to note that claims activity is just one of a variety of critical factors contributing to developing your auto insurance premiums.
While predicting small claims' immediate or long-term effects on your rates is challenging, claims activity inevitably carries considerable weight in determining your premiums. This underscores the importance of being aware and cautious about your claims activity, as it can substantially impact your premiums.
By reducing the number of claims in your insurance history, you can significantly affect your rates in the future. This proactive approach puts you more in control of your insurance costs, allowing you to make decisions that will benefit you in the long run.
Tip #5, which advises against submitting small claims, is closely related to
Tip #4, which discusses proper deductibles. Understanding how these tips work together is key to effectively managing insurance costs.
This article may have been originally published at Quora.com.
To see Jeff's Quora.com profile click here.
Most property insurance companies offer Actual Cash Value or Replacement Cost settlement options. Typically, insurance companies will require that you insure the property to the settlement value you choose. If you select Actual Cash Value, the amount you may be required to insure the property for will be less than the corresponding Replacement Value.
In that spirit, the Ryan Agency is sponsoring a Stearns BBQ Dinner pickup at our office on 57 Broadway Mall in Hornell on September 12th from 3:00 PM to 4:30 PM.
Today, an individual’s credit history can play a more significant role than any one of those traditional factors. Good Credit Scores lead to a Positive Insurance score. A good Insurance Score greatly influences what someone will pay to insure their vehicles.
Insurance companies offer various discounts for which their policyholders may qualify.
Great Eight number Six (6) suggests taking a look at removing Comprehensive and Collision on Older Vehicles.
Sometimes, this concept meets with resistance from policyholders. The thought of paying more in the event of a claim is off-putting to some. Even if that means I pay more for my insurance.
OK. Admittedly, this strategy doesn't benefit everyone, but it can be very beneficial for those it does. You may have unique home or auto insurance needs that prevent you from bundling with the same company. Alternatively… you might have a better rate without the bundle discount by splitting up your insurance between multiple carriers.
In recent years, companies have implemented discounts for paying insurance policies in full (or annually) for some types of insurance. Many companies offer this option, especially for their auto policies.
The Defensive Driving Course is the most universal and non-discriminatory way to save on auto insurance.
Regardless of the insurance company you choose, these eight great ideas will help you save money on your insurance now and in the future!
