By ARTHUR VIDRO
What It’s Worth
Bill-paying is a chore we all face, and for some of us it’s quite a burden. But bill-paying time is also an opportunity for the consumer to focus on what he’s purchasing and try to think of ways to reduce its cost.
For instance, almost all insurance companies give a discount if you purchase from them more than one type of insurance (auto, home, life). But there are other ways to save.
Back in 2017, when the bill arrived to renew my car insurance, the company sent me the payment form to fill out, along with a bunch of inserts. One of those inserts provided a list of new possible discounts — such as an Affiliation Discount if the policy holder (or the resident spouse) is a college graduate or a member of a trade association. Which is me. So I made a quick phone call and received a slight deduction on the premium. Other categories for the Affiliation Discount, for which I didn’t qualify but you might, include “Credit Union Member,” “Military Alumni,” and “Warehouse Member (such as Sam’s Club or Costco).”
The discount that helped me the most was mentioned separately. It’s called the “Original Owner Discount.” Because I’m the original owner of my beat-up 2002 compact Saturn sedan, I received a full 5 percent off my premium, though it entailed a little bit of paperwork. Had to dig up the original purchase contract and the evidence that the car loan had been paid off in full, make copies, and send them in. But looking at the bill’s inserts was worth it; my $114 bill (for six months of non-collision coverage) was reduced to $103. Eleven dollars saved. If I had a more expensive car and paid for collision coverage, the amount saved could have been triple figures. And those savings will continue in future years.
A friend of mine named Paul was impressed and asked me to look at his home insurance paperwork to see if any savings were possible. I agreed. I didn’t see anything promising in the renewal paperwork, so I asked for his original policy. Flipping the pages, I found a paragraph labeled “Age 55 (Or Older) And Retired Discount.” I had found something juicy.
“Listen to this.” I read it aloud to Paul. “Policyholders may receive a discount of up to 10 percent if at least one named insured is age 55 or older AND retired .” I paused. “You’re 55 now, aren’t you?”
He nodded slowly. “When I took out the policy, I was only about 50. Guess I figured it didn’t apply to me, and I haven’t looked at it since.” Then he shrugged off the idea. “But I’m still sort of working. Freelancing. So I won’t get the discount.”
“How old is Della?” I asked.
“My wife is 56.”
“Perfect,” I said. “Is she retired?”
“Yep.”
We alerted the insurance company. Soon enough, his house insurance premium (for twelve months of coverage), which had been at $526, was reduced to $496. That’s $30 saved. And the discount will keep getting applied. When Paul gets around to retiring too (and informing the insurance company), then the discount will grow.
Paperwork may be boring, but looking at it can save you money.
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