2 Important Coverage To Consider When Cutting Insurance Costs By Self-Insurance

Hey, guys. Jason here with 303 Insurance Brokers, and I want to share another insurance tip of the week with you. Last week, I was out having cocktails one evening with a client of mine, and they were very 

hyper-focused on what we can do to reduce his insurance premiums– self-insurance.

Taking The Risk To Save Money

What can we do to save more money? Even if that means taking on higher risk, and when we look at insurance and how it’s portrayed in commercials, it’s been highly commoditized.

When we think about saving 15% in 15 minutes and paying for what you need and all those commercials, they focus on price, price, price. Yet, insurance is truly the intersection of what you spend versus what you get.

Are You Capable Of Taking The Risk?

The idea is, do you want to self insure more? When I talk about self-insurance, we’re talking about things like; a quick example would be if we

took an older vehicle, maybe you choose not to carry comprehensive and collision on it, which means if it were to get into a car accident, there would be no physical damage coverage paid for by the insurance company.

Things To Consider When Self-insuring

As the insured, you are carrying the risks to fix them or replace the vehicle you own under unfortunate circumstances. That’s a standard tool of self-insurance. Other ways that people decide and collect your self-insurance are through higher deductibles. For example, you want to carry a higher wind and hail deductible, carrying higher deductibles on your automobiles.

Is self-insuring a bad thing?

The answer is no but, it’s really up to you. Are you at risk-averse? Do you want better protection? Or are you willing to self insure? Are you ready

to risk some of those things? Things that I don’t think are ever worth self-insuring are going to be your liability coverages.

We want to keep those high if we’re going to protect those assets. So it’s an important thing to understand. How do we control insurance premiums? What can we do to self-insure things to keep that premium down, keep our coverage at high.

So, if you’re ever interested in having a great conversation about this

or doing an insurance review, feel free to reach out to me. Jason@my303Insurance.com or (303) 506-2755. We’ll talk to you soon.