Managing Insurance Costs…Understanding Deductibles, Frequency and Severity

February 15, 2016||inBusiness Insurance, Personal Insurance|auto insurance, business insurance, claims, deductibles, homeowners insurance, personal insurance

Effectively managing insurance costs goes beyond considering coverage limits, options, and premium amounts. It also involves considering what fees you will pay out of pocket in deductibles.

Experts recommend viewing insurance protection as coverage for more catastrophic situations, such as a major fire, a severe car accident, or a financially devastating lawsuit, rather than for more minor losses. This makes a higher deductible worth considering.

Managing Insurance Costs...Understanding Deductibles, Frequency and Severity
Click here to submit an inquiry to Murphy Insurance or call us at 800 222 8711

Insurance companies consider the frequency (how often) and severity (dollar amount) of an insured’s claim history when determining premiums. These factors can result in increased premiums, and in some cases, companies may not renew a policy based on claim history. Given this reality, submitting claims for minimal amounts may not always be in a person’s best interests.

Consider the following strategies to keep premium costs down and get the most value when it comes to coverage:

  • Choose the highest deductible you can afford — This lowers premium costs. At Murphy Insurance, we strongly advocate having $1,000 or higher deductibles on your policies.
  • Don’t risk a lot for a little — You may want to redirect some of the savings from increasing your deductible into purchasing a higher level of protection. It often doesn’t cost significantly more and could make all the difference in a catastrophe.

Please Contact Us at Murphy Insurance to discuss your insurance coverage, premiums, and deductibles.

Read Other Blog Posts

Massahusetts DIA Seal

MA Dept of Industrial Accidents New Notice Requirements

The Department of Industrial Accidents (DIA) has revised the Notice to Employees and has established new notice requirements. On or before September 16, 2024, all employers must utilize and repost the revised Notice to Employees poster.
Read more
Apartment living room

Keep Your Home Safe While on Vacation

Taking a trip and exploring the world is fun, but leaving your home unoccupied has some risks.  Before departing, protect your property from accidents and criminals by considering the following precautions.
Read more
Male teen driver

5 Tips for Adding a Teen to Your Auto Policy

If your teen is approaching driving age, it may be time to start thinking about your plan for adding them to your auto insurance policy. Here are five tips to consider when adding a teen to your auto insurance policy.
Read more
Night driving

Understanding the Risks of Speeding

According to NHTSA data, speeding kills more than 12,000 people behind the wheel each year, contributing to nearly one-third (29%) of all traffic fatalities. With this in mind, it’s important to understand what causes speeding and how to prevent it.
Read more
Mold

Keeping Mold Out of Your Home

Mold not only damages your property, but it can also cause serious health complications after long-term exposure. With this in mind, try these prevention tips to keep mold out of your home.
Read more
Hacker

Cyber Risk Exposure Scorecard: Assess your risk

Cyber incidents have become increasingly prevalent, impacting organizations of all sizes and industries. As these incidents continue to rise in both cost and frequency, organizations must take steps to address their cyber exposures and bolster their digital security defenses.
Read more
Shipping dock

Exposing Double Brokering: Safeguarding Your Freight Against Deceptive Schemes

In the landscape of global commerce, the logistics industry serves as the backbone ensuring that goods reach their destinations efficiently. Yet, amidst the complexities of this intricate network lies a threat known as double brokering, a freight fraud scheme that can leave companies vulnerable to financial loss and operational disruption.
Read more
Fireman

The Crucial Role of Disaster Recovery Plans and Insurance Solutions in Protecting Your Business

When preparing for disasters, the significance of comprehensive disaster recovery plans and understanding insurance solutions cannot be overstated. These two pillars serve as crucial safeguards, offering businesses resilience against unforeseen challenges and ensuring continuity in the face of adversity.
Read more

Visit Our Personal Insurance Page

Personal Insurance

Life is an ever-changing journey, and it deserves a thoughtful, comprehensive plan to protect the things and people that matter most. Our dedicated team at Murphy Insurance is here to assist you in creating that plan. With a wide range of product options at our disposal, we ensure that your plan is tailored precisely to your requirements. Our commitment to providing clear, intelligent guidance to help you achieve true peace of mind. Learn more about our personal insurance portfolio.

Visit Our Business Insurance Page

Business Insurance

Murphy Insurance stands as your steadfast partner in safeguarding your business from unforeseen challenges in today’s dynamic business landscape. In an era where comprehensive business insurance is not just a prudent choice but a vital one for ensuring the long-term stability and security of your enterprise, we are here to offer our expertise. Running a business inherently entails various risks that can potentially impact your financial stability and reputation. Learn more about our comprehensive business insurance solutions, which are meticulously designed to protect you from these potential threats, granting you peace of mind necessary to focus on the growth and prosperity of your business.