As you gotten older, you realize there is something else you must protect and have- a Good Insurance Score.
And what is an Insurance Score you ask?
-It is how insurers rate you
How your insurance Score is impacted
Most insurers look at your claim history, going back 3 -5 years. And just like a credit score, after so many years, losses (debt) fall off and no longer taken into account.
The more claims you file, the more your insurance score is impacted.
Let’s be clear, insurance companies do not want you to NOT file claims, they just want you to be responsible and do your part to reduce the risk as much as in your control, so therefore you reduce the severity and frequency of it.
Is it MAKING SENSE?
Insurance is there when you need it, and its purpose is to help reduce RISK as well as to indemnify you to the financial position you were in prior to the loss.
But, insurers also take into account that they cannot be 100% financially responsible when a loss occurs.
That is why you have deductibles because YOU also have to take accountability, and by doing so, you share into the cost.
As much as we try to avoid risks, as well as paying out deductibles; we find ways to reduce it!
We drive slower, and are more careful on the road. We shovel the snow on our property to reduce the chance of someone falling and getting hurt. And we protect our business and equipment with a business owner policy (BOP). And we also eat healthier.
It is important you find ways to reduce risk, therefore reducing your chance of filing an insurance claim.
Insurance is great to have! And if we could afford it, we would insure everything that has value to us.
Because it gives you PEACE OF MIND, and what a Great feeling that is to have.
It is important you have a knowledgeable insurance agent working for you, who can explain your insurance policy to you. Because sh*% Does HAPPEN!