Primary Insurance – What Do I Need To Know Before I Buy Primary Insurance?

The most important things you need to know about primary insurance are the cost and coverage you get from your policies, and which policy is considered primary. In case of a large claim, it is important to have proper coverage and cost is always a factor.

Primary Insurance – Discounts

When you are buying policies, know which discounts are available for both your homeowners and car policies. With homeowner polices, some discounts you might consider are security devices, smoke detectors, proximity to a fire hydrant, and flood zone. Flood policies are very expensive, and when buying a home, you should first check out the cost of being in a flood zone.

As for your car policy there are several discounts, which will save money and still provide good coverage. Again as with homeowners policies, having anti-theft devices installed in your vehicle either when you buy the car or after market. Make sure you tell your agent about all such devices when you shop for insurance, and ask the agent for any discounts for which you may be eligible. Also, having a good driving record helps keep your cost low. There are also group discounts such as financial institutions, professional organizations, or your employer, which lower the cost of policies both primary and secondary.

Consider combining your car insurance policy with your homeowners for cost discounts, and you should always shop around for the best prices online or by phone. Also, be aware that you can lower your cost of primary and secondary insurance with a lower deductible, but be sure you have the savings available in case of accident. If your vehicle is older, you may consider canceling your collision portion of your policy. The older vehicle may not warrant collision coverage, and the cost of that coverage may out weigh the value of the older car. Car insurance policies are the second largest expense for most people after a car payment and that should be considered when purchasing any vehicle.

As with all policies, consider what you need covered, what the cost of that coverage is, as well as, what you will be able to afford in the event it becomes necessary to file a claim. Always look for discounts, and if your policies are old and outdated, talk to your agent to be sure your coverage is not outdated. There is nothing like finding out too late that you do not have the coverage you need. You need to ask questions, and compare prices.

Liability insurance is the coverage you would use after meeting your deductible. The primary insurance policy is your liability, and it has maximum coverage.  Only after the maximum is reached with your primary insurance would you be able to access your secondary policy.