Refinancing Your Home – Part IV

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PART IV

Decision Time

Now that you’ve completed your research and decided on a company, read the policy and verify it contains the coverage you want prior to signing the contract. Additionally, you should be aware and look for two clauses in the contract:

* Retain your right to sue

NOTE: Each state of residence varies. For example, Kentucky is a limited no-fault state, which means you give up your right to sue the other party until you surpass a $1,000 threshold of medical bills unless you have permanent disfigurement, break of a weight-bearing bone, etc. This has been the law since July 1975 and the threshold has not changed.

* Avoid aftermarket part requirements

NOTE: Some insurance companies may require an additional OEM endorsement, which guarantees your will have original parts replacement on both comprehensive and collision coverage, if available.

NOTE: Most insurance companies will limit the use of OEM parts for a total of 10 years on a vehicle, meaning after your vehicle becomes 11 years old, this guarantee/coverage expires.

The Bottom Line

For my efforts in “shopping” for auto and homeowners insurance (approx 3 hours), I ended up staying with our independent agent; however changed to a different insurance company. Personally, I think an agent to call to take care of your business adds value, but more and more people are not considering that a part of the equation.

In addition to needing to assess and adjust our coverage and limits, the overall outcome generated a savings of $1,250 per year. Yes, I spent 3 hours researching and shopping for insurance; however that equates to over $400 in savings per hour spent – not too bad of an hourly rate.

These savings will be injected back into our family budget, which means that we just need to absorb approximately $100 per month to cover our increased mortgage payment, which will result in shaving 9 years off our mortgage – saving us $91k in interest. Coming up with that $100 per month is much more manageable now.

I wish you happy “shopping” and much luck securing savings for your bottom line!!!

If you missed the previous posts you can view them now.  Part I, Part II, and Part III.

Comments

  1. kim wiley says:

    I cannot pull up part III could you email it to me by chance? Thank you so much!!

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