Most insurance policies are comprised of many elements. Each element can contribute to the total cost of insurance. So on the whole, you do not want to skimp on insurance. But there are ways to reduce your costs based on your priorities and your needs. Where you absolutely don’t want to skimp is on those elements that are affected by a third party.

For instance lets say you cause an auto collision and a person in the other car is injured. You are protected by the Liability element of your auto insurance. However, if you skimp here and you are sued, good luck. People can survive financially if their car is totaled, but it may be very difficult to survive financially if you are sued and your assets and wages are attacked in the lawsuit.

But you may be able to reduce the cost of other elements of your auto policy. Comprehensive and Collision elements may be reduced to help save money. If something happens, you may have to pay out of pocket, but these are typically not costs that can ruin someone financially.

There are also ways to reduce the cost of your homeowner’s insurance without skimping on the important stuff. Your home is probably your single largest investment, so there is a lot to protect. So maybe you just need to raise your deductible? A higher deductible means you pay more out of pocket at the time of a claim, but it won’t ruin you financially. Moving from a $500 deductible to $2000 could save you thousands of dollars over the life of your policy. You should also review what exactly is covered to see if there is a way to reduce the cost even more. Most policies accommodate a variety of personal possessions. Perhaps you don’t even own something that is covered and can have it removed from the policy to reduce the price.

The bottom line is this. Insurance serves a purpose. It ultimately is designed to save you from large financial burdens. If you focus your insurance dollars on protecting you from the biggest possible threats, then you can save money in the long run.

To learn more about ways to save on your insurance, contact your independent Provident Insurance agent. We serve Plainfield, Greenwood, Avon, Brownsburg, Indianapolis, Carmel, Zionsville and the entire central Indiana area. Stop in one of our convenient locations to discuss your insurance needs today.