Ever feel like the insurance industry is a shadowy cabal that charges you mysterious rates for seemingly no reason? While there likely isn’t a bona fide conspiracy afoot, you are partially right about the furtive tactics insurers use to keep you out of the know about your coverage rates. A former insurance agent recently spilled the beans on a local news outlet. The defected insurance agent highlighted some little known facts about insurance that every driver should know before trying to get low insurance rates. Some of these insights may surprise you.
First of all, regardless of how friendly a insurance agent may seem, to him or her, you are nothing but a statistic. Nice guy, cool shoes, snappy dresser – while all these things may be true about you, they mean nothing to your insurance provider. They look at you and see your gender, your age your occupation and other factors that seemingly have no bearing on your reliability as a driver. insurance companies pay out big bucks to actuarial research firms that conduct studies to see which demographic subsections end up costing insurers money in the long run. So don’t expect any personal favors from your agent when it comes to local auto insurance rate.
Another important fact: insurance companies differ. While all individuals are required to have a certain minimum coverage as dictated by state law, insurance agencies offer widely varying prices, coverage options and terms. Some leverage the consumer’s general resistance to taking extra efforts in checking out the competition and make a killing. Don’t fall into the trap of settling for the first insurer that gives you a quote – shop around, compare quotes and get the best deal.
Also remember to demand discounts. Whether you are signing up for a new policy or reviewing your current plan, you are likely entitled to a discount that your agent isn’t telling you about. It may even be written into your contract that you get a lower rate after a certain period of being a responsible driver and good customer. But agents with hundreds of clients to answer to often forget to apply these discounts. Speak up – it could save you a lot of money.
Lastly, it’s important to avoid going with the lowest bidder without looking into the reviews of company. One company may offer you rock bottom low insurance rates but may follow it up with shoddy service and dodgy tactics when it comes to filing a claim. Go online and check out the buzz about a company – both the pros and the cons – would they insure your wheels and aftermarket tires Googdyear or Toyosand look into several different insurers before signing on the dotted line. With the resources available on the Web in this day and age, there’s no excuse not to. Learn from the mistakes of those before you and save some money on your insurance.