Reduce Premiums: Increasing deductibles saves money, allocates premium better.
If your client has only $1 to spend on insurance, would you rather see her insure her fairway driver golf club against theft, or buy 10X more net worth protection from lawsuits? Many home owners spend way too much money insuring the smallest portion of small claims, but are inadequately protected against losses that could ruin them financially.
Increasing deductibles saves money on insurance premiums which can often "fund" incremental premium expenses tied to adding more critical coverages (Dwelling limits, Scheduled Valuable Property, Liability limits, etc). In fact, in most cases clients can improve the scope of their total insurance protection without spending any more if they are willing to reallocate their premium expense toward the "big things" and away from the "small things". Building that rationale into the custom design of the risk/insurance portfolio produces a tangible and powerful financing of risk.
Mechelsen, Inc. Darren McGraw, MBA, CIC mechelseninc.com
