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Augusta, Maine -

In an effort to help consumers save money while maintaining adequate coverage, Maine Insurance Superintendent Mila Kofman outlined strategies on Wednesday for reducing the cost of insurance. She also recommended that policyholders discuss all options with an insurance producer (agent) before taking action, and urged consumers to contact the Bureau of Insurance with any questions or concerns.

“There are many simple steps consumers can take to reduce the cost of their insurance coverage. They should begin by reviewing their current coverage and evaluating their needs. Insurance agents can review options with consumers and Bureau of Insurance staff members are always available to answer questions and respond to concerns,” Superintendent Kofman stated.

Bureau of Insurance “Savings Strategies” are listed below. Additional information about insurance issues is available online at www.maine.gov/pfr/insurance or by calling the Bureau toll-free at 800-300-5000 (TTY for hearing impaired: 888-577-6690). Questions can also be sent to the Bureau at Insurance.PFR@maine.gov.

• Comparison Shop – premiums can vary significantly from company to company. Be aware, however, an early cancellation fee may apply if a policy is cancelled early. A new policy may also be subject to cancellation during its initial review. Discuss with an insurance agent.
• Consider One Company – discounts are generally applied for having home and auto insured with the same carrier. Auto/Home package policies can result in even greater savings. Multi-vehicle discounts are also applied when more than one vehicle is on the same policy or with the same company.
• Evaluate Homeowners Discounts – generally offered for deadbolt locks, smoke alarms, security systems, nonsmokers, etc. Adding deadbolts and/or smoke alarms can reduce insurance costs while enhancing protections. Such changes can pay for themselves through insurance savings.

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• Evaluate Larger Deductibles - review deductibles and determine if a larger portion of a loss can be handled. Increasing homeowners deductible from $500 to $1000 or $2500 can reduce premiums 10-25%.
• Check Policies for Accuracy - check policy information for accuracy to be sure charges accurately reflect what is being insured. Insurance agents are available to explain policy language and charges.
• Change Driving Habits or Vehicle Use – commuting shorter distances or carpooling may result in lower rates, but only if the insurance agent or company is notified.
• Maintain Good Driving Record - drivers who are free of at-fault accidents or driving violations are often charged lower rates.
• Reduce Number of New Credit Cards or Loans - most insurance companies use an insurance credit score as a rating variable. As few as two new credit cards in a two-year period may adversely affect homeowners and auto insurance premiums. That new store card to get 15% off today’s purchase may not be such a great deal when insurance policies are renewed. Always keep in mind that credit score can impact insurance rates favorably or unfavorably.
• Consider Insurance Costs When Buying Vehicle - insurance expenses should be considered before purchasing a car. Premiums vary from vehicle to vehicle, depending upon how costly a vehicle is to repair or how well it protects its occupants. Sporty or powerful vehicles often cost more to insure than other vehicles, sometimes significantly more. A more expensive vehicle is also going to have higher insurance costs.
• Review Coverage Options – some consumers reduce or eliminate physical damage coverage on older vehicles, unless required by a lien holder. This can result in substantial savings.

The Bureau of Insurance is part of the Department of Professional and Financial Regulation which encourages sound ethical business practices through high quality, impartial and efficient regulation of insurers, financial institutions, creditors, investment providers, and numerous professions and occupations for the purpose of protecting the citizens of Maine. Consumers can reach the Bureau through its web site at www.maine.gov/insurance; by calling 800-300-5000 in state; or by writing to Bureau of Insurance, 34 State House Station, Augusta ME 04333.

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Last Updated: April 7, 2009 2:45 PM