You’ve seen the headlines, “Inflation is the worst in 40 years!” “The cost of gas has doubled!” *** 

The cost of everything seems to be going up. It has caused many Maryland families to tighten their budgets and cut costs wherever they can.

So, when it comes to insurance, which everyone needs, is it possible to get affordable insurance? We can say, without a doubt, yes! It does mean, though, that the insured does a few things to make it happen. Here are some tips to make your insurance purchase a positive experience:

1. Be honest: The old saying, “honesty is the best policy” is true in everything and insurance is no different. The insurance company knows you only by the information that you reveal. Then, the insurance premiums are determined by that information. The person applying for the coverage should never keep anything back such as their claim history or other pertinent details. Eventually, that undisclosed information may come back to haunt the insured when a claim is denied, and it costs them more than it would have had they been honest. Even worse, they may be reported for insurance fraud if it is a material misrepresentation. The moral of the story: Always tell the truth and disclose it when applying for coverage. 

2. “Inexpensive” can prove costly: If a risk is not identified, when a claim occurs, it may result in massive costs for the insured or even bankruptcy. So when meeting with an insurance agent, tell them the highest risk(s) that you have and then work your way down to the least risk. Thus, your policy can be designed especially for your risks and lifestyle. Be sure to look at the details and understand all the clauses, including risks covered and risks denied, in the policy. 

3. Manage your risks properly. One sure way to keep insurance costs down is to identify risks and manage them properly. Your policy premium is determined by the risks associated with the property. There are many factors involved in that. How far is your home from a fire hydrant? Do you have working smoke alarms and fire extinguishers? Do you have a home security system? Are you near a coastline? Do you smoke? Do you have a business at home? These are just a few of the questions you will get when applying for insurance. Failure to answer honestly diminishes your risk of mitigation. It varies from company to company and from location to location. So, to save money, ask your agent what you need to do to make your property risk-averse. Install the smoke alarms and fire extinguishers. It may even mean getting rid of the dog that has been identified as dangerous to visitors or adding railing to the steps to your front door or the deck. Minimizing risks may have a cost upfront, but the savings in premiums and deductibles should a look occur will far outweigh that cost. Insurance companies may also give discounts once those risk reduction measures have been implemented. 

4. Set aside funds for any loss. One way to reduce costs is to save money for a possible loss. By setting aside funds for your deductible or emergency fund, you can then use that money you might have paid towards a higher insurance premium to pay off debts or other costs. You can do this for your homeowner, auto, and business insurance policies.

As you see, there are practical ways to get affordable insurance. It may cost you some money upfront, but in the long run, you may save thousands of dollars and minimize your stress when a claim does occur. Speak with your insurance agent today to see how you can save on your insurance costs now. 

Lindquist Insurance has an experienced and licensed staff who can consult you on the best insurance coverage for you and your family. Call (301) 694-0008 for a consultation. We serve the Frederick, MD, and Annapolis, MD areas. 

*** For more information, visit the AAA website.