Friday, June 14, 2024

7 Secrets Your Auto Insurance Agent Isn’t Telling You

We want to give you some of the biggest secrets in the insurance industry. We only want to demystify the process of building wealth. This is why we deliver timely information and expert advice to provide you with life survival tools. The following 7 secrets will help make you a professional no agent or salesperson will ever outsmart. This guide helped you with your car insurance buying process. Here you go: 

  1. Every insurance provider specializes and provides the best rate to a very specific clientele. This means that if you don’t match their ideal client profile, you won’t be able to get the best rate. Your client profile can change drastically every year. Since your driving record, your age, your credit history, and vehicle type/age, all could change in any given year. You should be checking around to see if there is a better fitting insurance provider for you every year. For example, Young America Insurance is generally known for providing excellent rates for young drivers, Citizesinsurance for 55+-year-olds, RodneyDYoung for families, etc. If you don’t fit the ideal customer for that provider, your rate will be higher than average. 
  • Your local insurance agent makes a 15%-20% commission from your annual policy. Through no fault of their own, they must receive a commission. That commission comes from your total policy premium. This amounts to anywhere from 15-20% the first year and an additional ~10% every time your policy renews. If you don’t require constant attention from your agent/broker and self-manage your policy anyways… why overpay by 15-20%? You could save 15%-20% just by finding an online policy without an agent vs. with a local agent.
  • As a whole, Americans are overpaying $37 billion per year on auto insurance: that breaks down to ~$330 per driver in savings. It means every single person can find a better rate if they look.  
  • If you haven’t refreshed your policy in 2+ years, you’re most likely not in the best price group. Insurance providers rate all their drivers into price groups within the company. Meaning each provider could have multiple different sub-companies with differing rate categories. As you become older & a safer driver, you no longer might fit into the category you were initially placed in. You need to take action and ensure you have a fair rate at all times. 
  • You don’t really have to do any work yourself when switching policies. Every insurance provider has simple ways to cancel your previous policy. Once you have an online quote that you like you go ahead and move forward with the new provider. They will provide you with a simple cancellation form you can sign, which they will send over to your previous provider as a cancellation notice. It’s a piece of cake, if this is the only reason, you’re worried about shopping for a new rate every year… don’t be! 
  • It doesn’t make financial sense to have full collision/comprehensive coverage on an older vehicle. Often one of the most expensive coverages on an insurance policy is the collision and comprehensive coverage that covers your vehicle (not someone else’s vehicle) in case of a collision or comprehensive coverage covered event (falling tree, hail damage, etc.) More often than not, this coverage takes up approximately 50% of the total policy premium. If your vehicle is worth $5,000 or less, it may be smart to look into how much the comprehensive/collision coverage is costing you over the span of 1-2 years. If the amount adds up to be more than the vehicle is worth, remove the coverage and just keep the cash in an emergency savings account. You can always cover a $2,000-$5,000 car-related expense from that fund rather than wasting $2,000/year in coverage you don’t need. 
  • Don’t be afraid to ask as many questions as you’d like to your agent or insurance provider. This may seem like a total no-brainer; however, we want to make sure you’re aware that as their client, you have the right to ask your insurance provider as many questions as you deem necessary. Insurance costs take up a huge portion of most people’s monthly budgets. It’s important to understand your policy in its entirety before making any commitments. 

The Finish Line 

Using the information, you’ve already learned has made you a well-educated and informed insurance buyer. Now you made it to the finish line! If you made it through this guide, you are closer to being an expert in buying car insurance.

We have great confidence that you will get the best rate possible, a policy that truly covers you, and an insurance company that will have your back.

We shared these tips about how to achieve that juicy sweet spot between financial independence and undying happiness. Our purpose is to help you gain personal freedom and take control so that you can live the lifestyle you design.

The old way to get “the best deal” typically took several days to research the contact numbers, call insurance providers, and negotiations. Now it’s automated, takes minutes, and is called comparison quotes online. Test drive your car insurance options.

Sam Allcock
Sam Allcock
Sam heads up Cheshire-based PR Fire, an online platform that has already helped over 10,000 businesses to grab widespread media coverage on their news at an extremely accessible price point.

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