Have you ever wondered how to cut down what you pay as premium to insurers every year? Or maybe you have the thought of paying less premium without cancelling your policies? Do you want me to show you ways to beat your insurers to their game and get more for less? Accountants talk about minimizing costs and maximizing profits, do you know that you can actually lower your insurance cost by over 50% and in turn raise you benefit to 50%+ too? Do you want to apply this to your insurance cover? If your answer yes, then this blog is written for you! Now that you are excited - hopefully, I'm going to share some best-kept secrets with you that will blow your mind and make your insurance officer look like a clown! That's it, like a clown - the tips are as follows:
- Negotiate! Negotiate!! Negotiate!!!
- Get variety of quotes
- Combine, Split or reduce your cover
- Reduce the occurrence of a loss
- Ask for Fire Extinguisher Appliance (FEA) Discount
- Ask for First Loss Discount
- Ask for Stock Declaration Discount
- Ask for Group/Fleet Discount
- Ask for increased voluntary excess (deductibles)
- Ask for No claim discount (NCD)
- Ask for Long Term Agreement (LTA) Discount
- Contract a broker
1. Negotiate: learn the skill of negotiation or employ a broker to do it for you. If you are not so familiar with the terms of insurance to aid your negotiation, please contract a broker to do it for you...they are professionals in the business and the secret is that you are not going to pay them, the insurer will!
2. Get variety of quotes: this point is somehow related to the first on in that you don't have to do it yourself...get a broker to do it for you. But if you are less busy, go for it!
3. Combine, Split or reduce your cover: don't embark on double insurance especially for indemnity policies because during claim you will not get more than the value of your loss. So the best thing to do is to eliminate some policies you have already specifically covered e.g. do not cover your jewelry in your householder/owner policy when you have already covered it specifically under 'all risk policy.' Combining policies can give rise to package discount, for instance if you as a small scale entrepreneur or even large scale player take up a combined industrial all risk policy or packaged policy which as the case maybe embraces several other insurance policies which will include, fire, burglary, money, accident policies, public liability, motor, etc at the end of the day all the combination of the policies will give you the advantage of getting either a package discount of 10% or more from the insurer (the depends on the insurer.) Furthermore, some policies are better off alone, so in that case such should be split instead of having a single rate for such.
I'll share the secrets with you soon. Watch out.