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Amity Insurance: save money without sacrificing coverage

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QUINCY, MA ISSUED FEBRUARY 22, 2012…Money remains tight, with many people on the look-out for ways to trim dollars from their budget, but before cutting corners on insurance, consumers should carefully examine where and how they can trim insurance costs without jeopardizing the protection offered by their coverage, according to Amity Insurance Agency, Inc., the region's leading full service agency.

Reducing the dwelling/liability limits on their homeowner's policy and liability limits on their auto insurance policy are two areas insured individuals sometimes consider in an effort to cut the cost of premiums. In reality, reducing the liability limits on these policies can leave you highly vulnerable to risk and will not save money over the long run. While this measure might save a few dollars now, it isn't worth it considering the potential major cost should someone sue you after being injured in your home.

A more prudent approach to decrease premiums is by increasing the deductibles in your auto and/or home policies. A deductible increase from $250 to $500 could save up to 15% on your homeowner's insurance premiums; furthermore, a 30% or more savings could be seen by raising the physical damage deductible on an auto insurance policy to $1,000.

Certainly, some consumers become nervous over not having the money to cover their newly raised deductible should they need to file a claim. Since the situation doesn't involve thousands of dollars in difference, it's likely to be just as difficult for many people to come up with $500 as it would $250; the only difference is the extra premium savings can be set aside to cover the higher deductible from any future claims. It's safe to say that in most cases, the additional $250 could be saved in less than 24 months.

For those considering taking the larger leap to a $1,000 deductible, it might be wise to take a slow and steady approach. Start with a $500 increase, and then open a savings account for the premium dollars saved each month from having the slightly higher deductible. Although it may take some time, eventually you could raise the deductible to $1,000 with the amount accrued in the account.

Unlike lowering coverage limits, deductible raises can save you money without placing you at a greater financial risk.

About Amity Insurance

Amity Insurance Agency, Inc. is a full-service agency dedicated to meeting your business, professional and personal insurance needs.

Amity Insurance is licensed in most states. The agency maintains headquarters at 500 Victory Road, North Quincy 02171. For information on products or services, please visit amityinsurance.com or call (800) 940-4010 to schedule a free analysis.