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

Toast

Holiday party etiquette & serving alcohol

Read more
Umbrella

The Value of Commercial Umbrella Insurance

In today’s increasingly litigious environment, lawsuits stemming from liability incidents have surged in frequency and severity, leaving many organizations with substantial losses. Fortunately, that’s where commercial umbrella insurance can help.
Read more
Commerical truck and car

6 Factors Driving Commercial Auto Losses

A variety of trends have contributed to the rise of commercial auto losses. Here is a look at the most significant factors driving commercial auto losses across the country.
Read more
What is Your Jewelry Worth? When Should You Update Appraisals?

What is Your Jewelry Worth? When Should You Update Appraisals?

Valentine’s Day approaches, often marked by the exchange of jewelry as a symbol of love. While insuring every piece may not be practical, it's advisable to consider insurance for expensive items, particularly those worn frequently.
Read more
Car on road

Gap Insurance

Car owners often assume that if their car is totaled, it will be replaced at the amount they paid, or at least the amount they owe. However, that’s not always the case — learn why and what you can do to protect yourself.
Read more
Car outside of garage

Vehicle Storage Tips During Winter

As winter approaches, it’s time to think about safely storing your recreational vehicle to avoid damage from the harsh weather and roads. Utilize the following guidance to properly prepare and store your vehicle this winter.
Read more
Car stopped for pedestrian

Quiet Vehicles and Pedestrian Safety

Electric cars continue to make headlines, but anyone who’s had such a vehicle sneak up behind them while on foot knows how quiet they are. These vehicles, along with hybrid cars, run much more quietly than gas-powered cars—posing a serious risk to unaware pedestrians.
Read more
Wood-burning Stove

Wood-burning Stove Safety

The top source of fires in American homes comes from fuel-burning appliances—such as a wood-burning stove. Consider the following guidance to ensure safe operation of your stove—keeping you, your family and your home protected against the risk of a fire.
Read more
Outside lightbulbs

How to Reduce Winter Utility Bills

When outside temperatures begin to drop, one of the most costly consequences is the increased energy it takes to maintain a comfortable home temperature. With this in mind, consider these tips to reduce your monthly utility bills in the winter.
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.