What Factors Impact Safety Insurance?

When comparing insurance policies such as life insurance, health insurance, and car insurance, you’re going to want to conduct research and get the best deal. According to a 2020 Forbes advisor article, the most common way to save money on insurance is to bundle home and car insurance, which can save you somewhere between five and 25 percent.

While you’re going to want to shop around a little bit to ensure you’re getting the best deal, there are some basic things to consider that can affect the cost of safety insurance.

The Safety of Your Home

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When it comes to safety insurance, you can often get discounts not only if you bundle insurance policies such as home and auto, but also for safety initiatives. For example, if you have burglar alarms, fire alarms, and you don’t have a pool, then your homeowners’ insurance policy may get discounts.

Be sure to ask your independent agent at the safety insurance company that you choose about available discounts.

The Location of Your Home

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Homeowners’ insurance and renter’s insurance are usually affected by location. For example, homes located near fire stations (especially high-rated ones) and fire hydrants are going to cost less to insure, according to the Insurance Information Institute.

The same goes for homes that are in locations further away from the coastline and locations in low-risk areas for floods or earthquakes. Most natural disasters such as these are often an add-on to a policy so be sure you’re covered if you do live in an area where the danger is high.

When it comes to auto insurance, location will be considered due to factors such as the number of automobile thefts in the area and the amount of traffic.

Motor Vehicle Crashes

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Factors such as how many car crashes and speeding tickets are on your driving record can affect your car insurance rate. Even people with a clean driving record who get in an auto accident could see their car insurance rates increase by as much as 41 percent, according to an article in Forbes.

However, keep in mind that the severity of a crash is also a factor. For example, in Massachusetts, you won’t be charged more if you cause an accident where the auto claim(s) stay under $1,000.

Your Profession Plays a Factor

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If you’re looking for safety insurance for your commercial business, then this will greatly affect how much you’re paying for safety insurance. According to a 2017 article from Business Insider, your job itself can also affect how much you’ll pay for car insurance.

Age and Gender

If family members on your car insurance plan are under a certain age (especially teenagers) you’re going to pay more for car insurance as the less experienced driver is more of a threat to highway safety.

Depending on which state you live in, the gender of the drivers may also impact the cost as some states charge more for male drivers. Ask your independent agent what factors could affect your cost and if there are any options for discounts for younger drivers (some may offer a “good student discount,” for example).

How much health insurance coverage you have.

Often, your health insurance policy will go through a different insurance institute than your safety insurance. However, it will still affect how much coverage you will need when it comes to safety insurance.

If the policyholder only has a healthcare plan that covers primary care as opposed to emergency care and X-rays, then you’re going to want to consider asking your insurance agent about what will be covered if you’re injured in an accident in your car or home.

Bonus Tip: You also need to consider that healthcare isn’t just about your physical health, but also how well your medical plan covers your mental and behavioral health treatment. In the past, healthcare plans have advocated for helping their customers with nearly everything surrounding physical health while ignoring that mental health and mental illnesses play a huge role in the quality of life and overall health of a person.

If you’re having trouble getting mental health services covered such as seeing a therapist or vital parts of a treatment plan for substance use disorder or another mental health condition, don’t let the stigma hold you back. Look into a health care provider that will get you the mental health care you need.