How You Can Get the Most Out of Your Policy in Idaho

According to statistics from the Insurance Information Institute, Idaho is the 49th cheapest state in the U.S. for coverage. The state has very few natural disasters, which means less risk for insurers and lower premiums for residents. If you're looking for a plan in this state, read on for important information on how your rates are determined, how to choose the right coverage, and what your rights are as a policyholder.

What Influences Premiums

Here are the factors that will determine your costs:

• Construction material: Brick homes will cost less to insure than frame houses.
• House's age: Newer dwellings are typically cheaper to cover because they qualify for discounts with most companies. If your house is older, certain providers may refuse to cover it or only offer limited protection.
• Fire protection: How close your property is to a fire hydrant and the quality of the local fire department will influence your costs.
• Deductible levels: Higher deductibles will lower your premiums.
• Discounts: Multiple-policy discounts offer substantial savings to residents who purchase several policies from the same provider. For instance, you may be able to purchase home, auto, and life insurance from the same company for maximum savings.

Choosing a Deductible

This term refers to the resident's financial responsibility for claims against house and personal property protection. For instance, if you filed a claim for a stolen TV worth $1,000 and your plan had a $500 deductible, you would receive a $500 benefit from your insurer. As mentioned previously, selecting higher levels will keep your costs as low as possible. On the other hand, raising deductibles will mean considerable out-of-pocket expenses if you ever have to file a claim. Though you can save on options with higher deductibles, setting them too high will only backfire financially. You should choose a level that is high enough to keep your pricing reasonable but not so high that you couldn't afford to pay it if necessary.

Idaho Policyholder Rights

Provider may cancel your plan before its expiration date, but only for specific reasons, such as nonpayment of the premium. If your policy is canceled, state law requires that the provider send the customer a cancellation notice at least 30 days in advance of the cancellation date. On the other hand, if your plan is canceled because of nonpayment, the company is only required to send you a notice ten days in advance of coverage cancellation.