How to Find Cheap Insurance and Save on Your Claims

Cheap Insurance: How to Find and Save on Your Claims

If you’ve been in the insurance industry for any length of time, you’ll know that claims can be a double-edged sword. On the one hand, they can be a lot of fun and give you an excuse to party like it’s 1999. They can also be expensive and require a lot of work to sort out. However, when they do happen, they can be very challenging to navigate. This is especially true when dealing with property and casualty (P&C) insurance. According to the National P&C Association, property and casualty insurance claims cost the U.S.$1.3 trillion in 2010 — more than auto insurance or liability insurance combined! So what makes a claim? Is it just a series of unfortunate events? Or are there some things you can do to lower your risk and make sure you don’t have to settle for less?

What is a claim?

A claim is any legal action taken by an insurance company related to a covered loss or damage. A claim can be for bodily injury, property damage, or a mixture of the two. Typically, every insurance company has a different set of rules about what makes a claim and how you may pursue a claim. However, the general rule is that you must have a valid claim in order to pursue a claim. The amount of any claim, the modalities by which you pursue a claim, and the frequency with which you pursue a claim are all different depending on different aspects of the claim.

What makes a claim?

Many things can make a claim, but the main things that make a claim are: - Loss or damage caused by someone else’s negligence - Medical bills or expenses related to the loss or damage - Fault on the part of the insured - The amount of the claim - The age and state of the insured asset(s) - The identity (or lack thereof) of the person who caused the loss or damage - The state of public infrastructure at the time of the loss or damage

Why is it so expensive to make a P&C claim?

Although no two P&C claims are exactly the same, there are a few things that tend to make claims more expensive: - Higher stakes - Stresses on the insured asset(s) - The age and state of the insured asset(s) - The identity (or lack thereof) of the person who caused the loss or damage - The amount of the claim

How to navigate insurance claims

When you have to navigate a claim, you are trying to navigate both the insurance company and the government regulatory systems simultaneously. This can be a very challenging task. The first step to navigating a claim is to assess the risk. You can do this by doing a physical assessment of the insured asset(s) and the extent of the loss. Once you have an idea of the asset’s actual condition, compare this to what it would cost to make the repair. If you believe the repair would cost more than the insurance company is paying, then you have a valid claim. Keep in mind, though, that most insurance companies will pay out what they estimate to be the fair value of the asset. This could be different than the total cost of repair.

The 3M principle for searching for cheap P&C insurance

There are a few things every insurance company does and does very well. These are the three M’s that every insurer loves to use when marketing their coverage: - Minimum coverage - Most insurers only require you to pay for what you are actually responsible for, not what you believe you are responsible for. This is known as minimum coverage. -Maximum coverage - Most insurers will only cover what they think you’re responsible for, not what you know you are responsible for. This is known as maximum coverage. -Mitigation - Some coverage's provide for the reduction of your damages, for example, property damage protection. This is known as mitigation.

Coverage's to avoid when making a P&C claim

When you’re making a P&C claim, you’re not just seeking reimbursement for the actual loss. You’re also trying to get as much as possible in the way of protection. Some of the things you might want to keep in mind before making a P&C claim are: - Identity of the insured (and his or her insurance details) - Age of the insured asset - State of repair of the asset - Quality of the insured asset - Total cost of repair - Purpose or use of the asset

Wrapping up

When it comes to finding cheap P&C insurance, it’s important to keep in mind that you’re trying to minimize your losses and increase your chances of a successful claim. So, while you may only need $100 coverage to avoid a $100,000 claim, some insurers will charge you much, much more for that coverage. In order to find cheap P&C insurance, you’ll need to sort through the options and figure out which policies have the best deal for your family.

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