Surprising Ways to Save Money With Insurance
Your coverage could help you save on legal fees, pet injuries and more.
March 10, 2010— -- In this rocky economy, everyone wants to make the most of their money, and there are things you probably didn't know about your insurance that could help you cash in.
These savings are covered by the types of insurance people most typically carry, such as homeowner's insurance and auto insurance -- nothing exotic.
Homeowner's Insurance Away From Home
Many people don't realize that your homeowner's insurance often covers your possessions, even if they aren't at your home. For example, if your luggage is stolen while on a trip, many policies cover about $500 of losses. If your child is a full-time college student and lives in a dorm -- not an off-campus apartment -- your homeowner's policy probably covers their personal possessions as well. And if you're out shopping and stash your purchases in your car, your car insurance doesn't cover them, but your homeowner's policy does. You'll need receipts as proof, so keep those with you when you go back in the mall for more shopping.
A Lawyer to Defend You
Homeowner's insurance and car insurance both pay to defend you if somebody sues you for something that's covered by the policy. Maybe a delivery guy trips on your front steps, or the other driver in a fender bender suddenly claims back pain. Be sure to check with your insurance company about coverage, because a legal defense is probably part of your policy.
Spoiled Food Because of an Outage
Many companies include coverage for spoiled food in your homeowner's policy, and others sell it as an additional benefit. Regardless, the power outage must have been caused by a covered "peril," like a windstorm that knocked power lines down or lightning that zapped your electricity or a fire that cut off power to your neighborhood.
People Who Borrow Your Car
You may not want to admit it because then you'll have to lend people your car, but as long as you give permission, people who borrow your car are covered by your auto insurance. You might assume that the driver's own car insurance policy would kick in, but the coverage is tied to the car. So the auto insurance for that car applies. You'll just have to pay your deductible – or get your friend to pay it.
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