Affluent Americans are Overpaying and Underinsured
Everyone wants to know how to save money while retaining the best insurance coverage. Patti Clement of HUB International’s Private Client Advisors Group was recently featured in a white paper released by ACE Private Risk Services on opportunities to maximize the value of your personal insurance. Some interesting findings that came out of the survey of 600 agents and brokers include:
Mind the Gap in Coverage: Umbrella policies are a great tool for protection, but be mindful of the gap in coverage between your other policies and the Umbrella policy. If your auto policy caps at $100,000 and your Umbrella doesn’t take effect until $300,000, you may be responsible for that financial difference.
Don’t Trust Other Drivers: A 2009 study from the Insurance Research Council (IRC) notes that as many as 1 in 6 drivers in the US are uninsured. If you find yourself on the side of the road after a collision with one of these drivers, they won’t be able to afford the necessary automotive repair and/or medical care you require.
Raise Your Deductible: The typical homeowner files a claim only once every 11 years. Raising your deductible from $500 to $2,500 can result in premium savings of up to $900 per year, or $9,900 over the course of 11 years, which easily covers the $2,000 difference.
Take your Prevention Credits: Almost every house has a fire alarm, burglar alarm, electrical back-up, automatic water shut-off or gas leak detection system. Make sure you tell your agent, as you may be eligible for savings on your premium exceeding 30%.
Protect Against the Big Lawsuits: The 2008 data from Jury Verdict Research indicates that 14% of personal injury awards exceed $1 million and 4% exceed $5 million. It is therefore a cause for real concern that most policies are capped at around $500,000 particularly for an affluent individual who is more often the likely target of these large suits.
For a copy of the ACE Private Risk Services study, please click here.
