There’s a saying that “it’s better to be lucky than good,” meaning that life might be more enjoyable if one counts on spontaneous good fortune rather than putting in the time and effort to build that good fortune. This adage is a nice daydream, but it doesn’t work out so well in reality. Despite it not being a reliable life philosophy, do you still depend on it in some circumstances?
In the insurance industry, we sadly see a lot of people putting their faith in luck instead of smart planning and preparation. Rather than take a critical look at all of their assets and risks, individuals often base their insurance coverage on paying the lowest premium and hoping that it will be enough. If you’re taking this approach with your insurance right now, you might be pressing your luck.
How Do I Determine the Best Auto Insurance Coverage?
While auto insurance in PA is a legal requirement, the amount of coverage people carry is very flexible. When trying to be budget conscious, car insurance is one area where many people opt for the lowest premium and hope they are lucky enough to have enough coverage.
Here are a few scenarios to consider when selecting the lowest budget car insurance:
Property Damage Liability Limit – If you hit one car and push it into a second car or a piece of property, will your limit cover all the damages? Account for the fact that any given damaged car or property may have a very high value.
Lawsuit Protection – If you hit a work truck that is carrying goods or supplies that get destroyed in the accident, you could be sued for lost income in addition to the replacement cost of the goods or supplies. Do you have insurance protection to deal with that kind of suit?
High Deductible Auto Insurance – While a high deductible makes your premium more affordable, do you have enough money to cover it when you need it? A high deductible is a great way to save money, but we recommend keeping that amount in a savings account in case you do ever need it.
Each individual should talk about their auto insurance with an agent who takes time to make sure it’s the right coverage in the right amount. Often, carrying the right insurance has a lot more to do
with where, when, and how often you drive than basic luck.
How Do I Determine the Best Homeowner Insurance Coverage?
Homeowner insurance in PA is designed to make sure you have a roof over your head even when things go horribly wrong. Whether you file a claim because your house suffered a loss or because you are liable for something that happened on your property, it’s important to never leave your family’s shelter up to luck.
A few homeowner insurance scenarios that should be considered when determining coverage include:
Property Liability Coverage – Every homeowner knows they are liable for injuries on their property, but what if a child were to be permanently disabled at your home? The parents could sue to cover the lost income for that child’s entire lifetime.
Protection for Belongings – Though reporting the full value of all of your household belongings will result in a higher premium, it also ensures that you will receive enough money to replace those items after a claim. A higher deductible may be more budget-friendly, but keep that amount in savings so that you can replace everything after a major event.
Insure to Value – Insuring for only a percentage of the value of your home and its belongings is another cost saving strategy that may not work out well in a claim situation. Insurance companies already calculate that not all the belongings will be lost in a fire or other major damage event, so it’s important not to reduce the coverage even further. There may even be penalties for not insuring to full value, which could prevent you from recovering enough for all of your damages.
It can be stressful to determine how to protect your home’s belongings while keeping your insurance policy at an affordable rate. An experienced agent will understand your concerns and work with you to identify the best coverage for your needs and budget.
Work with an Insurance Agent Who Does Not Let You Rely on Luck
One of the best ways to avoid pressing your luck with insurance is to work with an agent who is in your own community. Local agents have inside knowledge about the area where you drive, work, and live that help them build the most appropriate and affordable policy. At Smyrl Insurance, we educate, nurture, and empower individuals through insurance to make sure they fully understand the risks and benefits with every policy option. If you are relying more on luck than information with your home or auto coverage, contact us to review your policies and help you make a more informed decision. We serve clients for personal, home, auto, business, and life insurance in Hatfield, Lansdale, Souderton, Harleysville, and throughout Montgomery County, Pennsylvania.
