The Struggles of Being “Insurance Poor” – Let’s Talk
In the 90s, the term “house poor” emerged to describe people who purchased more home than they could comfortably afford. By the early 2000s, “car poor” became a popular phrase for those in similar situations with their vehicles.
Now, we’re facing a new challenge: being “insurance poor.”
Insurance premiums seem to rise with each renewal, leaving us feeling powerless, regardless of whether we’ve ever filed a claim.
As an average family with a standard home and typical cars, we find ourselves paying nearly $1,000 a month for both vehicle and homeowner’s insurance. Our income may be slightly above average, but it hardly alleviates the burden of these escalating costs.
Much of our high premiums stem from opting for coverage above the minimum — a responsible choice in today’s sue-happy environment.
I doubt we’re alone in this struggle.
Aside from the usual recommendations like lowering coverage, increasing deductibles, or completing a defensive driving course, what alternatives do we have? Let’s discuss!
I can totally relate to your concerns about being “insurance poor.” It seems like every year, premiums just keep climbing higher, and it’s frustrating, especially when you’ve been a responsible policyholder.
Beyond the usual suggestions, there are a few alternative approaches you might consider:
Shop Around: It might be time to get quotes from different insurance companies. Sometimes, insurers are willing to offer competitive rates to attract new customers. You could also negotiate with your current provider—let them know you’re considering switching for a better rate.
Bundle Policies: If you’re not already doing this, consider bundling your home and auto insurance with the same company. Many insurers offer significant discounts for having multiple policies with them.
Review Coverage Options: While you want to maintain adequate coverage, it’s worth reviewing your policies to see if there are any areas where you could reduce coverage without compromising too much. For example, you could reassess the value of personal property or consider adjusting some optional coverages.
Loyalty Discounts: Some insurers offer loyalty discounts for being a long-term customer. If you haven’t checked for these, it may be worth asking your provider directly.
Install Safety Features: For vehicle insurance, installing safety features like anti-theft devices or advanced driver assistance systems (ADAS) can sometimes qualify you for discounts.
Participate in Usage-Based Insurance Programs: Some insurance companies offer programs that monitor your driving habits through a mobile app or a device in your vehicle. If you drive safely, you could earn discounts based on your driving behavior.
Join an Association or Group: Some professional associations or organizations offer their members exclusive discounts on insurance policies. It might be worth checking if you’re eligible for any such discounts.
Ultimately, while insurance costs can feel overwhelming, taking these proactive steps may help ease the financial burden a bit. It’s about finding the balance between getting the coverage you need and managing costs effectively. Good luck!