Adjusting Insurance Premiums

March is when we owe USAA our auto insurance premium.  This year, it was topping $500/6mths for our two cars (after all the discounts!), and I don’t think it should be.  We have never had an at fault accident, and Dad has only had one moving violation in the last 3 years (it was adjusted from “speeding” to “failure to obey posted sign” – no points).  Dad’s car still has collision on it, because it’s a difference of $1/mth, so we might as well.  Mine has collision as it’s financed still.  I removed the rental car option – we *can* survive on 1 car, and hopefully, it’s the “other guy” who’s paying for the rental car anyway.  I also raised our deductibles to $1000 per vehicle.  We have that money in our emergency fund, and it saves us about $50/6mths.  It’s also the highest deductible allowed, so I can’t reduce it any further.

I also looked at our homeowner’s policy.  It had us replacing the inside contents of our stuff at a 75% of home value rate – over $355k of “stuff”.  I can’t imagine how we would spend that much on the interior items in our house, it’s *maybe* $100k-$150k.  I was able to lower that coverage to 50% of home value or about $250k.  It lowered our premium by about $50/year.

I *almost* changed our deductibles as well.  We have a $2,000 deductible for both options (“wind & hail” and “other”), and I considered raising them to $4,500 – tied to home value, it will always be 1% of the home rebuild value.  It would have saved us another $500/year.  The only reason I didn’t do it was that our emergency fund would not be able to take two car deductibles *and* the homeowner’s deductible at the same time.  We’d need another $1500 in our emergency fund to do so.  By the end of this year, I hope to have a lot more than that in our emergency fund, so I will likely raise those deductibles then.  We could raise them as high as $10,000, which may be a consideration as we have more and more savings to self-insure.

How often do you look at your insurance premiums and coverage to make sure you’ve got the appropriate amount of insurance for you?

One thought on “Adjusting Insurance Premiums

  1. donebyforty

    I wish I could say we review these annually. But the truth is that we only review them when we get a nudge to do so, like with good posts like these! I’ll give our insurance guy a call to review our options.


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