Insurance is business, and your insurance agent is working for a particular carrier or carriers to make money. Here are a few things your insurance agent doesn’t want you to know.
Non-Smokers Get Discounts
Non-smokers can get discounts on any type of insurance policy, including Home Insurance, Auto Insurance, and Life Insurance. The discounts range from 5% to 15%. If your policy does not list a non-smoker discount, you can ask your insurance company directly.
Low Premiums Hide Real Costs
Some insurance agents purposefully give you very low quotes on insurance policies so you can buy the policy faster. However, this approach comes with certain risks for you. Low premiums may hide high deductibles and low limits of coverage. In case of a claim, you will end up paying a lot out of pocket with these policies.
Credit Score Matters
Insurance companies review your credit score when calculating your insurance rates, so they know if you are in high risk or low risk group for accidents and filing claims. Your insurance agent might omit that, but better credit score will result in lower insurance premiums, while bad credit history will lead to you paying more for insurance.
Necessary Optional Coverage
Since insurance companies’ goal is to sell the product, they may leave out optional coverage options so that the client signs faster. However, there are coverages that while optional provide necessary protection that might be essential for you. For example, many states do not require having coverage for underinsured motorists, yet the coverage might be necessary for you since many drivers in the US are uninsured.
Captive Agent vs. Independent Agent
When you think about how many insurance companies are out there, you probably lose count of names. If you work with a captive agent who represents only one insurance carrier, you will not be getting the best insurance rates. Working with an independent agent is the best way to get the most suitable insurance rates, since independent agents do not represent a single carrier, but browse quotes from multiple carriers across the country.