With talks of an economic recession still lingering, millions of consumers today are cutting back on discretionary spending—and are even tightening up on the necessities. Now is an excellent time to review your insurance coverages with your Trusted Choice^® independent insurance agent to find ways to cut costs while still protecting your family or business.

The premiums paid for insurance are a tremendous value. For instance, for the cost of several hundred dollars annually, a homeowners insurance policy provides a family with the means to rebuild its home and reimbursement for the cost of temporary housing should the home be destroyed in a fire.

To consider how to cut expenses, it’s helpful to take a step back. Consider anew what insurance premiums are paying for the transfer of risk. Insurance is a unique tool that allows consumers and business owners (through a financial transaction and a legal contract) to transfer risk from the consumer or business owner to the insurance company. If you transfer less risk—either by reducing the risk overall, or retaining more of the risk yourself—the insurance carrier will charge less.

Your Trusted Choice^® insurance professional can help you consider two important questions if you want to cut costs on insurance:

1. What risks might I be paying to insure that I can assume myself?

The risk profile of a family or business changes over time. It’s important to share with your Trusted Choice^® agent if the family or business situation has changed recently.

One thing that changes is the financial risk a family faces as children are born and grow. Parents of newborns face a lot of financial risk, since they face 18-plus years of raising that child and, for many, paying for a college education. Life insurance is the common way to protect against the risk of a parent dying while a child is in school. Yet, when the child graduates, a parent might reduce the amount of life insurance they own—and thereby reduce the amount of premium they pay. Inform your insurance agent if these changes are occurring for you.

For homeowners insurance policies, the first place to look to trim expenses is the deductible, which is the amount of money the policyholder must pay before the insurance company starts to pay a claim. The higher the deductible, the lesser the premium will be for the policy. A consumer with a $500 homeowners deductible can save as much as 25 percent by raising it to $1,000, reports the Insurance Information Institute. A policy with a higher deductible is less likely to have claims, in part because consumers that bear more risk tend to be more careful and have fewer claims.

2. Have I taken advantage of all the discounts offered?

The market for personal lines insurance is highly competitive. This has kept costs down: Homeowners/tenants insurance costs increased by about 17 percent between 1999 and 2008, compared with a 57 percent increase in the cost of repairing household items and a 50 percent increase in legal services, according to the U.S. Bureau of Labor Statistics.

Auto insurance carriers offer special programs that help consumers keep a lid on costs. Ask your agent about discounts for having a homeowners and auto policy with the same carrier; for maintaining a claim-free record for consecutive years; for low-mileage drivers; and for young drivers who keep good grades.

For older vehicles, consider dropping collision coverage. Since auto insurance claims occur about once every 11 to 12 years, it may not be cost-effective to insure a vehicle that is worth less than 10 times the collision insurance premium. (In this case, the claim reimbursement likely would not exceed the premium minus the deductible amount.)  Ask your Trusted Choice^® agent what the cash value of your older vehicle is, to help you decide.

One caution: The slump in housing prices has tempted some consumers to cut the amount of insurance on their homes, but that’s a trap. Homeowners insurance should be based on replacement cost, not market value, and many homeowners are already underinsured. Replacement costs continue to grow steadily, year after year, regardless of market values. Your agent can help you determine the proper amount of homeowners insurance for you.

Finally, your Trusted Choice^® agent also can help by shopping your insurance needs to a number of insurance carriers. If you haven’t done so in three years, now is a good time to ask if your policies can be reviewed to make sure your pricing is the most competitive available.

Consumers spend billions on their homes. Home improvement projects tallied to a whopping $280 billion in 2005, according to research from the Joint Center for Housing Studies at Harvard University. The center forecasts that home renovations will grow at a steady 3.7% rate annually through 2015, after inflation.

What shouldn’t be lost in the excitement of adding a bedroom, updating a bathroom or the kitchen is your financial security. The risk management and insurance tools available through your Trusted Choice^® insurance agent are indispensable when you’re renovating.

Be aware that home renovations add to the risks you’re facing as a homeowner, including injuries to family, contractors and delivery workers; fire, theft, and vandalism; and water damage. What’s more, know that you must protect yourself from financial liability for anything that goes wrong.

It’s imperative that your homeowners and umbrella insurance coverages are set up correctly before, during and after your renovation project. The time and paperwork required may seem a distraction when you’re eager to upgrade an older home, install an energy efficiency retrofit, or renovate a rental property. But it’s every bit as important as buying the building materials or choosing the contractor.

Before renovations start: Require contractors to provide proof of insurance for workers compensation and liability coverages.

Workers compensation insurance pays for medical and rehabilitation expenses (and covers lost wages) if workers are hurt on the job. Workers who are injured in your home can sue you or claim damages from you if the contractor they work for does not have adequate coverage. (By default your homeowners and umbrella liability policies can become their insurance coverage, an unwelcome development for those who pay the premiums and do the claims paperwork.)

If you need to move out during construction, notify your agent so you can be certain that you have proper coverage for a temporary residence such as a hotel or rented home.

Recognize that building code upgrades and market changes may change the standard to which your renovated home is held. For example, home alarm systems have become popular, so you may wish to add one during your renovations. It may add to the renovation cost, but can make your home safer and earn a homeowners insurance discount. Such decisions are generally best considered before the project starts.

During construction: With the added risks—such as construction accidents, fires due to power tools and open utility lines, and strangers in the house who may be tempted to steal your property or your identity—you may want to consider temporarily increasing homeowners and/or umbrella policy limits and/or changing the deductible.

After the project is finished: Home improvements can increase the market value and replacement cost of your home. Your agent can guide you to proper insurance coverage levels for homeowners and umbrella policies.

The renovated or expanded space in your home may fill up with new furniture, exercise equipment, electronics, and appliances. Track those purchases with receipts and a written or electronic home inventory. Additionally, check the coverage in your homeowners policy for personal property (home possessions).

* Prepare your first line of defense – Use sturdy locks on all doors and windows and secure before you leave. Repair any broken windows or locks. Never operate under the assumption that a burglar won’t find the one that’s faulty.

* Enlist the help of a trusted neighbor – Tell one neighbor your itinerary and your estimated time of arrival and return. That person should have a key to your front door to periodically check on the house, and a telephone number where you can be reached in an emergency.

* Don’t broadcast your plans – Especially in the era of social media, never post your travel plans on Facebook or Twitter. According to a recent article in the New York Times, tech-savvy thieves are taking advantage of the detailed information provided by unsuspecting social media users.

* Never let the house appear empty from the street – Stop your newspaper delivery, and have your neighbor pick up your mail and any packages left on the front porch. Arrange for someone to mow the lawn, rake leaves and clean the yard if you’ll be away for an extended period. Ask your neighbor to place garbage cans at the curb on normal pickup days and put them back after the garbage pickup. If you leave your car at home, park it where you normally would. However, be sure your neighbor moves it occasionally so that it appears the car is being driven. If you’re driving your car, have your neighbor periodically park in your driveway or in front of your house.

* Your home shouldn’t seem empty on the inside either – Plug in timers to turn lights and even a television on and off at appropriate times. Turn the ringer on your telephone down. If a burglar is around, and hears a call that goes unanswered, they’ll know you’re away. Don’t leave a message on your answering machine notifying everyone you’re on vacation. Leave your blinds, shades and curtains in a normal position. Don’t close them unless you would normally do so while at home.

* Don’t give thieves alternate ways to enter your home – Lock garage doors and windows. You should also secure storage sheds, attic entrances and yard gates.

* Don’t leave valuables in plain sight – Consider locking valuables in a bank safety deposit box. If you do leave valuables at home, make sure they are engraved. This simple precaution will allow stolen property to be easily identified and returned to you if recovered later.

Many insureds believe so. One method of cutting back on your premium costs is to reduce the dwelling or liability limits on your homeowner’s policy. Similarly, you could also request a reduction in the liability limits on your auto insurance policy.

However, not only do these methods fail to save you money in the long run, they also make you increasingly vulnerable to risk. Consider how much you could lose if a judge decided against you in a liability suit, or someone was hurt in your home.

A wiser course of action is to increase your policy deductibles. On a homeowner’s policy, raising your deductible from $250 to a $500 could realize a premium savings of 10 to 15 percent.  You could also consider raising the deductibles on the physical damage section of your auto insurance to save money on the premium. Having a $500 deductible on both comprehensive and collision can save you as much as 30 percent. A $1,000 deductible may result in even more savings.

Many insureds argue that if they do need to file a claim, they won’t have $500 to cover the newly increased deductible. While $500 may sound like a large amount of money to get together, it is actually only $250 more than you would have needed if you still had the original $250 deductible. Keep in mind that with the savings benefit you will get from a higher deductible, you should be able to save that extra $250 in less than 2 years.

For those larger savings, consider a graduated approach.  If you are not financially able to go from paying a $250 deductible to paying $1,000 deductible, raise your deductible to $500 now, and put the money you save into a dedicated savings account for the purpose of accumulating money to increase your deductible again. When you have saved enough in the account, increase the deductible to $1,000.

Raising your deductible will definitely save you money over the long-term. More importantly, it will not put you at an increased financial risk.

Another little known fact is that very few fires are caused by natural events such as lightning or static electricity. The American Red Cross says that faulty appliances and faulty wiring cause the greatest number of house fires. The second most common source is heating devices such as kerosene heaters, wood stoves and fireplaces. These devices cause fires when furniture, boxes or clothing are placed too near to them, and the material overheats and bursts into flames. Although human error is often the catalyst for house fires, human preparedness can prevent them.

Here are some tips to keep your family and property safe:

* Purchase only quality household equipment that has been tested by Underwriters’ Laboratories (UL) or other appropriate testing facilities.

*Be certain that  household equipment is installed by a technician who has been trained how to properly install, and also knows the appropriate building code requirements for the installation.

*Have your electrical wiring and heating periodically checked to be sure they are in proper working condition.

*If an appliance is behaving erratically, don’t operate it.  Instead, call a qualified repairman to find the problem and correct it.

*Control the amount of combustible material in your home by removing cardboard boxes, newspapers, old mattresses, rags, leftover paint and other items that are no longer in use. In fact, you should periodically inspect the attic and the cellar to be sure that you aren’t storing any combustible materials that should be discarded.

*Check the type of wall finishes in your home to ensure they aren’t conducive to spreading a fire. Plaster and gypsum board retard fire growth. Plywood paneling made of compressed wood pulp, known as beaverboard, accelerates the spread of fire in dwellings.

*Place fire extinguishers so they are readily available in the event a fire starts. It is important to understand what type of fire extinguisher to use:

-Class A extinguishers can be used to put out fires in wood, rubber, cloth, and paper.

-Class B CO2 or foam-filled extinguishers can be used for fires in flammable liquids, greases and gases.

-Class C CO2 or foam-filled extinguishers can be used for fires in energized electrical equipment.

-Halon can be used on any type of fire.

*It is of utmost importance to put a smoke detector in every room.

*Schedule regular practice fire drills. Be sure children are completely familiar with the correct way to evacuate in the event of a fire.

*Don’t let your family be the victim of this “silent disaster.” Become familiar with these fire prevention tips and put them into practice.

How Does It Work?

These criminally staged collisions frequently involve several suspects driving a car. The victim is the driver of another vehicle that’s being targeted by the suspects staging the collision for their own financial gain.

The suspects will most often use one of two techniques:

1. Swoop and Squat

Two or more suspects drive two different vehicles. They target an unsuspecting vehicle, most often an older model that only contains one victim. This is done so that there will not be any witnesses to the collision. The one or two suspects in the squat vehicle position their car in front of the vehicle driven by the victim. They slow to create a smaller space gap between themselves and their victim. Then, the swoop vehicle suddenly changes lanes to cut in front of the squat, thereby causing the squat vehicle to throw on breaks and stop. As a result, the innocent victim rear-ends the squat. Meanwhile, the swoop vehicle is long gone and the squat vehicle is claiming that an unknown vehicle cut them off and forced them to brake.

2. The Drive Down or Wave On

In this version, the suspect(s) are stopped at the entrance to a parking lot or an intersection. They wave on or yield the right-of-way to the victim. When the victim proceeds, the suspect intentionally accelerates to collide with the victim.

What Can Drivers Do To Reduce The Risk Of Being A Victim?

* Stay aware of your surroundings, paying close attention to what the vehicles several in front, behind, and beside you are doing and maintaining sufficient room between you and all other vehicles.

* Use caution when making a turn in front of another vehicle, even if they yield the right-of-way.

* Since suspects tend to look for innocent drivers that accidentally cross the center line and then sideswipe them, pay close attention to staying within the lines of a lane.

* After any accident, count the number of passengers and get their personal information. You may find that more people are listed on the insurance claim than actually in the accident.

* Avoid driving when you’re stressed; preoccupied with a cell phone, map, or food; or lethargic. All of these lessen the care at which you drive and your concentration abilities, thereby increasing your vulnerability.

* Have a camera in your vehicle to take photos of the scene, license plates, and the occupants of the other vehicle you have an accident with.

* Always call the police and get a copy of the police report. If the damage to the other car is minor, then ask the officer to specify this on the report, as this will make it more difficult for the other party to create more damage for a larger claim.

* Alert the authorities if you feel the accident was staged.

In closing, these staged traffic accidents often have criminal elements that reach far beyond just the suspected drivers. It’s often a criminal collaboration between unscrupulous doctors and attorneys that willingly and knowingly assist in the fraudulent insurance claim process.

Most people realize their credit affects their ability to get mortgages, car loans, and other types of debt. However, businesses use personal credit histories in many other ways. Employers use it when considering job applicants. Landlords use it to evaluate prospective tenants. Increasingly, insurance companies are using it to develop an “insurance score,” a number that reflects the quality of a customer’s credit history. The companies’ research has shown  that people with good insurance scores tend to submit fewer insurance claims than people with poor credit histories. Because of the predictive value of credit history, many insurers now obtain an applicant’s insurance score during the underwriting process.

Some consumers are concerned about insurers using their credit information in this way. However, the use of scoring actually has many benefits for insurance consumers.

Insurance scoring speeds up the underwriting process. Before insurers began using scoring, underwriting decisions could sometimes take days. Internet technology allows an insurance company to obtain your score within seconds, which cuts the decision time down to just a few minutes. Many insurance agents are able to obtain a company’s approval almost instantly.

Scoring uses the facts about a person’s credit history to enable underwriters to make objective decisions. Scoring does not take into account a person’s race, nationality, gender, marital status, or other factors that the person cannot control. It focuses only on how that person has used credit in the past. The insurance application still asks about factors such as gender and marital status, but the insurer uses those answers only to correctly classify the person and ensure that it charges the proper rate. Scoring looks only at numbers, resulting in decisions that are much fairer. People of widely differing incomes and backgrounds who have similar insurance scores are treated the same way.

Scoring recognizes that a person can make up for past mistakes. Just as he can improve his driving record by becoming a more careful driver, a person can improve his insurance score by reducing debt and making payments on time. Old mistakes lose importance as time passes; scoring gives more weight to recent actions than it does to older ones. As the score improves, the person can benefit from lower rates and more companies interested in insuring him.

Scoring also increases the availability of insurance. Many companies use different pricing “tiers,” built around specific policyholder criteria. Scoring makes the use of tiers easier because it is an objective factor. If a company has five pricing tiers, and an applicant’s score is too low to qualify for the best one, the company might be able offer insurance to that person in one of the other tiers. It gives companies alternatives to simply rejecting the application.

Because scoring is an automated process, it makes the underwriting process more efficient for insurers. This lowers their costs and allows them to charge lower rates. Also, because it allows insurers to more accurately predict losses, they can control their losses and keep their rates lower.

Studies have shown that most people have good credit scores. Because of this, most people benefit from insurance scoring. They pay lower rates for home and auto insurance then they would otherwise. People who want to earn better rates can more easily fix their credit history than they can fix their driving records, which generally keep traffic violations for at least three years. Scoring gives insurance companies another tool to ensure their rates are fair, so that customers more likely to file claims pay more for their insurance.

At this time your agent will look for ways to ensure that you avoid any substantial coverage gaps and improve your coverage protection where needed. Here are some key points about what to expect during your condominium coverage checkup:

* Before visiting your insurance agent, ask your condo association for a copy of the declaration document that indicates the coverage you (the unit-owner) should be insuring yourself.

* You should help your insurance agent evaluate the appropriate property insurance limit for your specific condo. If you’ve done remodeling work, for example, then your unit-owner policy dwelling limits may not be sufficient and any damage incurred to your updates wouldn’t be covered under your master policy.

* The chance of assessments (from the association to you) in order to reimburse any deductibles the association incurs from a loss covered by the master policy is also an important consideration. This is a situation that can be very problematic for you if the assessment is from high property deductibles within the condo association’s master policy. The amount of the deductible can be found in the declaration document mentioned above. Most policies usually provide a limited amount of coverage for the assessment. If this is your case and there’s a possibility that you’ll be assessed over the assessment coverage limit, then you can probably increase that amount of coverage for your assessment.

* Your insurance agent will look for coverage gaps in the perils covered under your unit-owner policy and help you decide if the perils should be expanded.

* One last important element to review under your unit-owner policy is your personal property or content limit. Inform your agent of all big-ticket purchases that you’ve made since your last review, as your limit may need to be increased to provide adequate coverage.

Most people neglect to compare Michigan auto insurance quotes until they have a bad experience with their current carrier.  The desire to shop is usually triggered by an increase in rates or a bad customer service experience.  Whatever the reason, when people shop they find savings opportunities.  Michigan auto insurance rates can vary, often significantly, from one insurance company to the next.  That is why it is so important to shop the competition at least once a year.

Comparing Michigan Auto Insurance Quotes is a Hassle

Shopping for auto insurance used to be a hassle.  Thanks to technology this is no longer the case.  5 or 10 years ago when you wanted to compare rates you had to deal with multiple agents at several companies in order to compare prices.  It is now as easy as filling out an online insurance quote request.

How Can I Compare Rates Online?

Here is how it works.  Simply visit an online insurance comparison site and select the option to compare insurance rates.  You will be asked to provide some basic information about your vehicle(s) and the drivers in your household.  It should only take about 5 minutes to complete the questionnaire.  Once you have finished you will submit your information and just sit back.  The computer will go to work comparing rates at multiple top-rated insurance carriers.  When the research is complete you will have multiple Michigan auto insurance quotes to choose from.  It doesn’t get much easier than this.

Curious how your rate compares?  Compare Michigan auto insurance quotes now.

Are you paying too much for your MI Insurance?

If you are like most people the answer to this question will be a resounding yes!  Nobody likes to overpay for any product or service.  And yet most people neglect to compare Michigan insurance quotes on a regular basis.  Most consumers wait until they have a bad experience with an insurance company before they start shopping around.  The truth is that MI insurance rates are changing all the time and assuming you are paying the lowest price is a big mistake.

Myth #1:  Shopping for Michigan insurance quotes is a hassle

This couldn’t be further from the truth.  In years passed comparing rates from multiple insurance companies was a hassle.  Now thanks to technology things have changed drastically.  You can now compare multiple Michigan insurance quotes online in just a few minutes.  It is as simple as filling out an online quote request.  Once you have completed this step you can just sit back while the computer does all the work.  Within minutes you will have multiple Michigan insurance quotes to choose from.

Myth #2:  I’m already getting the best rate for my MI insurance policy

Maybe.  Maybe not.  If you haven’t shopping around and compared MI insurance rates recently you are probably paying too much.  Each insurance company has their own proprietary formula that they use to calculate rates and as a result prices can vary significantly from one company to the next.  It is worth taking 5 minutes of your time to see how your rate compares to other MI insurance carriers.

Myth #3:  Shopping for Michigan insurance quotes will take a lot of time and effort

False.  You can now compare quotes from multiple MI insurance companies online in minutes.  Take 5 minutes now to complete an online quote request and just sit back while we do the work.  If you prefer a more personal shopping experience feel free to give me a ring at 248-987-0501.