Hey!!! Why Is My Neighbor’s Insurance Policy Less Than Mine?

December 16, 2013 at 3:42 pm | Posted in Insurance | Leave a comment

Have you ever been out washing the car, mowing the lawn or shoveling the snow and stopped to chat with your neighbor?  One conversation leads to another and you end up chatting about your insurance rates, only to discover you are paying more than your neighbor?  If the chore you were performing didn’t make you hot, you were now!

But before you pick up the phone or bang out an email to your insurance agent consider the following factors insurance companies use to determine the premium you pay.

  • How is your credit rating?  Insurance companies use an insurance score to predict the likelihood of a client filing a claim and how expensive the claims might be.  Generally, consumers with a good insurance score file fewer claims and the losses are lower.  Credit scores run by financial institutions differ from an insurance score.  Financial institutions will look at your income, insurance companies do not!
  • Are your coverages broader than your neighbor’s coverages?
  • Some homeowner insurance factors:
    • Do you have the same type of alarm system as your neighbor?
    • Is your neighbor’s home the same square footage as yours?
    • Do you have an Italian marble island in your kitchen compared to the standard countertop in your neighbor’s kitchen?
  • Some auto insurance factors:
    • How’s your driving record?  If you have any speeding tickets or infractions and your neighbors record is clean, that will make a big difference.
    • Have you taken a defensive driving class?  Has your neighbor taken one? A defensive driving class saves you 10% on your vehicle liability, personal injury protection and collision sections of your auto insurance premiums.
    • The number of miles you drive to work is a factor as well.
    • The type of vehicle you drive is a consideration.  Some vehicles are more likely to be stolen than others.
    • Do you have youthful operators or more vehicles than your neighbor?
  • Some business insurance factors:
    • How long have you been in business or working in your industry?
    • Do you have employees that seem to repeatedly get hurt on the job?
    • Does your commercial building have sprinkler and/or alarm systems?
    • Does your business have a risk management safety program in place?

So while you might feel angry at first, the best thing to do is call your agent and review any discounts that might be available to you.  Discuss the “extras” your home or auto might have and how that affects your insurance premium with your agent.

The NSA Group is a Trusted Choice/Independent Agent which means we are also capable of quoting multiple insurance companies to make sure you are getting the best fit for your needs and your budget. Contact us if we can be of help with any insurance matter.

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