Inproper Insurance Savings Strategies

More from Safeco...<br /> _____________________________________________________<br /> Decisions to avoid<br /> <br /> It's just as important that your clients understand what not to do as they look for cost savings. Here are some scenarios customers should avoid:<br /> <strong>It may be unwise to carry only the minimum state-required amount of uninsured/underinsured motorist coverage on auto policies, or cancel it entirely if it is not required in your state: </strong>According to the Insurance Research Council (IRC), the correlation between the percentage of uninsured motorists and the unemployment rate is high. In fact, the IRC forecasts that by 2010, the percentage of uninsured motorists will likely be 16.1 percent in 2010, up from 13.7 percent in 2007. In accidents involving an at-fault motorist, your clients would pay out of pocket for repairs if they don't carry adequate uninsured/underinsured motorist coverage &mdash; and that amount would be far more than the premium they pay for this important coverage.<br /> <strong>Ignoring renters insurance:</strong> This coverage is often overlooked no matter what shape the economy is in. Imagine having to replace furniture, clothing and other personal property out of pocket because people excluded this essential, affordable coverage and then suffered a devastating loss from a burglary or other covered event. The III website states that a Bureau of Justice Statistics survey of households revealed the burglary rate for renters is about 50 percent higher than for homeowners, based on 2005 data, while a 2006 poll by the IRC revealed that 43 percent of renters were without coverage.