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How to Save Money on Homeowners Insurance

June 5, 2023 By Erin H Leave a Comment

If you have ever gotten into financial trouble after an accident at home, then you know home insurance is not a luxury but a necessity. That’s why many homeowners are purchasing home insurance to avoid financial challenges in the event of a catastrophic event like fire, burglary, or water damage. According to Value Penguin, about 85% of American homeowners have insured their homes. Home insurance is not cheap, and that’s why you may want to learn a few money-saving tips to help you save on your homeowners’ insurance policy.

Assess Your Needs

Before you buy anything or find ways to save money, you need to know your needs. Assess how big your home is, how old it is, the material used to construct it, its location, and the neighborhood. This will help you save by skipping the coverages you don’t need and getting only what you need. For instance, you could have a water leak issue, which is not typical for all customers. Leaks can easily lead to mold growth, which is another significant issue. According to Comfy Living, mold starts to grow within 24 to 48 hours after water damage has occurred. You want to ensure your homeowners’ insurance company offers coverage to protect your belongings.

Shop Around

The first step that comes to mind when shopping for insurance is checking rates from different companies. This not only helps give you an average cost but also helps you spot the right insurance company. Ideally, you don’t want to go with the cheapest one. It’s prudent to review the coverage offered and determine whether they’re adequate and what you need. Ask if the company offers discounts to know if bundling up can help you save more.

Make Your Home More Secure

You have heard insurance experts tell you to invest in security systems that help keep your car or home safe. Insurance companies recognize these efforts and most often lower your premiums if you have systems that tighten security in your home. Generally, the more secure a home is, the less likely it is for burglars to get in. Investing in simple gadgets like a smoke detector, motion sensors, burglar alarms, security cameras, and deadbolt locks all help lower your premiums, saving you money.

Improve Your Credit Score

It may surprise you to learn that your credit score has a substantial impact on your home insurance premiums. When you apply for your policy, your insurance company will ask you to fill out a form with details about you and your house. The information you provide determines your rates. One of these critical details is your credit score. If your credit score is too low, you will likely pay higher rates. If you think your credit score is too low, consider improving it.

Get Rid of High-Risk Items

Though it may be fun, owning something your insurance company thinks is a problem can quickly raise your premiums. Home insurance companies find swimming pools, trampolines, and other playground equipment high-risk items. They call these items an attractive nuisance, as they contribute to higher premiums. Anything that children may be tempted to play with or on is considered an attractive nuisance. If they get injured while doing so, you can be sued. You may have to cough more in your policy if you own these items.

Renovate Your Home

Your home won’t attract better rates if it appears neglected. While they can sometimes be costly, renovations save you money in the long term. Simple projects like painting, replacing your siding, getting new cabinets, or adding a landscape feature in your outdoor space can go a long way toward getting you a good homeowners’ insurance rate. According to Bob Vila, homeowners recoup more than half the project cost after replacing the siding.

You can save a lot of money when you know how homeowners’ insurance works. Follow these helpful tips if you’re looking to save on your insurance costs.

Filed Under: Insurance

Is Medicare necessary if I already have health insurance?

November 14, 2022 By Susan Paige Leave a Comment

Like many business owners, you have been wondering whether or not you need to sign up for Medicare. This article will break down precisely what Medicare is and how it works.

So, keep reading to learn more!

[Read more…]

Filed Under: Insurance

Why Is Electric Vehicle Insurance So Expensive?

August 27, 2022 By Susan Paige Leave a Comment

Because of their increasing popularity and lower entry price, more and more people are opting to buy electric vehicles. Even though electric cars are becoming increasingly cost-effective, they remain more expensive to insure than their gasoline or diesel-powered counterparts. However, it seems strange that insurance costs are higher for electric automobiles than for gas-powered ones. 

Keep reading to learn why electric vehicles have such high insurance costs. Because they produce no exhaust, electric vehicles dramatically lessen urban air pollution. They are called “zero-emission vehicles” (ZEVs) because their motors don’t release harmful gases or exhaust into the atmosphere.

Do electric cars require a higher insurance premium?

Since they produce significantly less pollution, electric vehicles (EVs) are acceptable for the environment and economical to operate. More excellent value is provided in comparison to more traditional models. Nevertheless, insurance costs for such vehicles are typically higher than for gasoline or diesel vehicles. This is due to the greater initial investment, higher risk of damage, and greater expense of repairing EVs.

As technological advancements help automakers lower the price of electric vehicles, the cost to maintain them also decreases. Insurance premiums will go down as the cost of repairs and overall ownership goes down.

In addition, cutting-edge insurance firms are creating budget-friendly policies for electric vehicles. This is made possible by advanced digital infrastructure and the no-agent, no-commission model. In light of the low overhead associated with electric cars, a number of insurance providers have developed competitively priced policies for these vehicles.

Costly premiums 

Car insurance rates in California for EVs fluctuate based on several factors. These variables heavily influence the cost of insuring an electric vehicle. The following are the most critical factors contributing to EVs’ higher insurance costs.

The cost of electric vehicles is higher

Compared to gas- or diesel-powered cars, the price of an electric vehicle (EV) is significantly higher, contributing to the higher insurance premiums associated with EVs. Electric vehicles (EVs), including high-capacity batteries and sophisticated auto components, feature state-of-the-art hardware. Consequently, the IDV and premium go up in tandem with the price of a car.

Costly components for electric vehicles

Even though there are fewer parts in an electric vehicle than gasoline or diesel-powered cars, the lithium-ion battery is still the most expensive. They account for over 50% of the final sticker price. Batteries are expensive to repair or replace, contributing to higher insurance premiums.

Manufacturers of automobiles are working to lower the price of these batteries. With the price of batteries going down, insurance rates should go down, too.

It’s common to practice replacing the battery in an electric vehicle

All batteries, including those used in EVs, have a limited time before they begin to degrade in performance or stop functioning after use. Batteries may need to be replaced periodically. Replacement costs are higher due to the high price of lithium-ion batteries, which is reflected in the insurance cost. Battery replacement intervals can be shortened to save money and reduce premiums.

Mechanics for electric vehicles are becoming scarcer

Higher maintenance costs for electric vehicles can be attributed to the greater complexity and higher initial cost of its components. Mechanics who work on electric vehicles must have specialized training. The number of qualified individuals is currently lower than that of traditional auto mechanics. Due to the high cost of hiring a specialized mechanic, the labor cost associated with the repair or replacement may be higher.

Exactly what details should an EV owner give to their insurance company?

When it comes to insurance, battery-powered vehicles are treated the same as their gasoline and diesel-powered equivalents. The latter is the actual cash value of the vehicle, while the former is the Insured Declared Value (IDV). You can get instant cover for your EV by providing basic information about the car and the status of its current car insurance policy if any. Our online service (website/mobile app) makes this a reality.

Make and model of car: Vehicle make and model is a significant factor in determining insurance costs. When calculating the IDV, the vehicle’s fair market value plays an important role.

Location: Location is essential, with some areas being more dangerous than others. Therefore, the premium will be slightly greater in high-risk locations than in low-risk ones.

Year of manufacture: To better understand the depreciation value of the EV, the insurer needs to know the year of manufacture when calculating the IDV.

Contact number: The insurance company will need your contact number for various reasons, including sending One-Time Passwords (OTPs), providing status updates, sending reminders for payments and other administrative tasks, and communicating with you regarding claims and other important dates.

Usage of the vehicle: For your insurance company to provide an accurate quote, they need to know how often you will drive the vehicle and for what purposes.

 

Conclusion

More and more people want to buy electric cars, therefore several companies have started making them. People are starting to buy these cars because of their low impact on the planet. The price of these hybrid vehicles will inevitably decrease as demand increases, which will lead to lower insurance premiums in the future.

 

 

 

Filed Under: Cars, Insurance

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