Insurance is pretty important and definitely needed in life for just about all occasions. Whether it’s life, home or auto, insurance is there for a reason just in case anything ever happens. Do you ever wonder what happens to all that money we pay into insurance? I know I do. Especially since I’ve been in my house for five years and have yet to put in a claim for anything, haven’t been in a car accident over the last ten years and am still alive. (Knocking on wood)
So where is all
that money going that I pay monthly? The hubby and I often talk about this all
the time and recently learned a few things that I didn’t know before and
thought I’d share it with you in case you have the same type of questions and
concerns that I do.
So we pay our
life, home and auto insurance monthly, the money that we pay goes into a big
pool so that when or if you ever call in a claim your insurance company can
pull from that same pool and help pay towards what we’re putting a claim on.
Since there are more of us contributing than there are claims being made there
is always enough money to pay the claims that are being made.
We all know that
once a claim is made our premiums tend to some times go up. This is calculated
on the probability that you will make a claim again or at all. Those of us that
are unlikely to make a claim and get money from the pool are more than likely
to pay less than those that have a higher chance in making a claim.
- Dropping your collision coverage on
older vehicles.
- Getting packaged deals. By insuring
one or multiple cars, home and life insurance by the same insurance
company you have a better chance at saving money.
- Installing an alarm system in your
vehicle.
- Buying a car with a lower-cost
insurance rate.
- Where you live - living in an urban
area may affect your premium.
- What you use your car for - Those
going back and forth to work daily verses those that use their vehicle to
run errands.
- Your driving record - An accident free driving record can help you qualify for competitive insurance rates.
Disclosure: Although this post has been generously sponsored by IBC, the
opinions and language are all my own and in no way do they reflect The
Insurance Bureau of Canada
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