Insurance Marketplace: Shopping, Discounts & Innovation

2008 demonstrated why the Texas insurance market is so unique. With more than $10 billion in claims losses - 5 times more than any other state - our state's tremendous weather exposure makes insurance a riskier proposition than any other state.  However, there are ways for Texas consumers to take control of their insurance needs and find companies, products and services that fit their lifestyles and budgets — including shopping around, taking advantage of discounts and incentives and better utilizing insurer innovations. 
Shopping for the Best DealInsurance companies compete for your business, so it certainly pays to compare price quotes. However, you should also compare the products and coverages being offered as well as the service capability of various companies. A good resource is the “Homeowner Price Comparisons” page on the Texas Department of Insurance (TDI) website. TDI also publishes “Shopping Smart: Tips for Texans Purchasing Auto, Homeowners & Rental Insurance” and has set up a website to assist consumers with purchasing automobile and homeowners insurance – www.helpinsure.com.

When your homeowners or auto policy comes up for renewal, you should ask the following questions:
Homeowners Insurance:
Has the coverage offered in the insurance policy changed since last year?
Has the value of my property increased in the last year?
Have I made any improvements to my property in the last year?
Have I purchased enough coverage for my property?
Do I want or need replacement coverage?
Does my policy now include separate deductibles for risks like mold or hail?
Do I live in a flood plain or area prone to flooding?
Can I save money by raising the deductible?
Auto Insurance:
Has the coverage offered in the insurance policy changed since last year?
Can I save money by raising the deductible?
Should I comparison-shop for better rates?
Do I want or need replacement coverage?Discounts and IncentivesMost insurance companies offer a variety of discounts that can impact your final rate. You should always be sure to check with your insurance company or agent to see if you qualify. Some of the more common discounts are:
Homeowners Insurance:
Home security system
Smoke detection system
Impact-resistant roof materials
Some insurers have also recently started to provide discounts for energy efficiency improvements
Auto Insurance:
Anti-theft equipment
Air bags and anti-lock brakes
Defensive driving program
Good student
Also check to see if the insurer offers a multiline discount when you purchase more than one line of insurance, such as homeowners and auto. Insurer InnovationsMany insurers are utilizing technology for everything from allowing customers to download insurance identification cards (no more excuses for being pulled over without your proof of insurance!) to expediting the claims process and enhancing customer service through innovative iPhone apps and online processing. Check with your insurer to find out what types of products are available so you are better prepared in the event you have an accident or other insurance needs.

Coming Soon: In addition to the extreme losses, the costs associated with paying claims have been increasing in Texas and across the country. Look for future Insiders with an in-depth analysis of costs.

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