Sometimes the concept of commercial property insurance can seem a little out-there: why pay for an insurance plan just in case you may need it in the future? However, with vehicular accidents occurring on the road every day and homeowners dealing with the effects of the environment (and their own usage) on their means of shelter, affordable insurance is not only more relevant than you think, but also an available and accessible reality quite within reach. Here are several reasons why home and auto insurance is both important AND worth your attention:
- Property and Personal Injury are Both Very Expensive. In 2013, the average claim for property damage during vehicular accidents was over $3,000, while the average claim for bodily injury was over $15,000 (a rate nearly 5 times higher). On average, insurance services usually cover 50% of all vehicular accident-related costs.
- Insurance Companies are Watching You. Not in the ‘Every Breath You Take’ way, but insurance companies are always using data to adapt their policies, create comprehensive auto insurance and to make sure that they have the best clients on top of striving to be the best company. Need examples? Sure:
- On average, young drivers between 16 and 25 years of age have the highest insurance rates (males have even higher rates than females).
- Getting a speeding ticket increases your insurance rates every time.
- Car insurance companies look for drivers who have gaps in their insurance coverage (meaning they aren’t checking their coverage or expiration date) to find clients who are “at-risk.”
- Insurance companies have been known to offer discounted rates to drivers of hybrid vehicles because the data has suggested that they are less likely to be involved in vehicular accidents.
- Getting a Quote Isn’t so Hard, Either. Several companies offer free insurance quotes, but on average the prices have been roughly the same over the past several years. According to a 2013 report by the National Association of Insurance Commissioners, the average auto insurance cost changed from $799 in 2007 to $797 in 2011, a 0.25% (one-fourth of one percent) decrease over 4 years.
- Homeowner Insurance Is Just as Thorough (If You Are Too). Homeowner’s insurance typically covers damage from wind, tornadoes, hail, snow and other more-common natural causes. Floods and earthquakes, however, usually require additional coverage and is not included in most standard plans. The main point of this is to double-check what your home is insured for and make sure that that covers the most common or serious natural disasters in your general area.
- Homeowners Aren’t the Only Ones Who Need Insurance! According to a 2014 Insurance Information Institute poll, 95% of all homeowners polled had purchased homeowner’s insurance while only 37% of renters polled had purchased renter’s insurance.
One of the most important things to remember with commercial property insurance is that it’s a system in place to help you in case you ever happen to need it. Not everyone has enough pocket change saved up in the bank to fully handle emergencies when they occur to themselves or their family members, and having a safety net can help create a little piece of mind.
How do you feel about commercial property insurance companies? Tell us about your experiences with home/auto insurance in the comments below!