In this article, we’re going to talk about the things that insurance companies don’t want you to know.
There’s kind of some cheats and some tricks and we’re not telling you that you should be doing these; we’re just going to go over this. You can kind of see some of the things that we’ve seen over the last thing, you’re selling car, home and umbrella insurance; the personal lines as we call it.
Here are things that the insurance companies don’t want you to know:
Your liability portion
The car insurance rate you on is your liability portion because back in 1927. That’s where insurance became mandatory. So that was the reason is you had to cure it. There’s a different level of risk. Level 1 is lowest person, eighteen-sixteen year old driver had an accident, had a ticket almost nobody wants to insure that person. Level 2 is the next person up, we’ve got a twenty five year old driver who does have a tick in an accident, and we’ve got a twenty five a thirty year old driver who doesn’t haven’t taken accident we got if it keeps going.
When you get close to your eighties that kind of comes back down and that risk goes up. So what’s happening is that liability portion is being rated against. So what kind of liability do you need versus what kind of liability limits do you have.
What it does is that liability risk so your state has what’s called a minimum; a state minimum liability. Whenever you call an insurance company and you have a Junker car you’re asking for PLPD personal liability and property damage, because most states require you to carry your property damage. When you’re saying “I want just PLPD” they might ask you what liability limits you want, that determines your risk not what you’re going to pick. But what you already have. If you have a higher liability risk coming to an insurance company, it’s a lower risk, because you’ve already proven that you’re responsible enough to know that you want a higher limit to protect you better.
Typically when somebody has the 100 / 300 , but when someone has that one thousands of person 300,000 for accident coverage then that will give a lower risk to the insurance company in turn that will typically save you a lot. In some states, it’s hundreds of dollars. So make sure that when you’re doing this that you’re carrying the right liability limits.
Comprehensive and collision
The insurance companies don’t want you to know specifically when you have comprehensive and collision. Comprehensive and collision are really good things. But most people don’t realize that comprehensive is almost nothing. It’s really cheap to have. If you hit a deer or have glass damage or someone steals your car, it’s good to have that extra coverage. If you’re driving a clunker car, it might be cheap to have. But it’s almost worthless to use it.
Collision is the opposite, collisions where the risk is at right, if you are at fault or not at fault if you’re in an accident, it doesn’t matter collision you’ve collided. Then that’s covering your car no matter what the situation is.
File a claim
This thing is more of a recommendation than what you need to know is because a lot of people don’t know that when you need to file a claim you should get advice, because what typically we see a lot is these companies will tell you for ease of use call us, we’re going to help you out the most, we’ll just make it simple, well being simple doesn’t necessarily save you money. So when you have a claim, if you hit a curb or if you hit a car or if something happens and it’s pretty minor if it’s not your fault or your fault there’s a lot of things to think of. does my state charge me for not at fault accidents? So should I claim that? Does my state charge me for a fall accident? How much was the? damage? How much was the damage of the person I hit? Are they going to file a claim against me So if I’m going to pay for that out of pocket, I need to make sure I take the steps that it doesn’t go on my insurance, because at the end of the day, if I pay the claim and the guy calls and claims it anyways then I’m kind of just double screwed myself. Now I’ve got an at fault accident, I’ve paid out pocket money and then the insurance is just going to say “okay now your rates are going up”.
Some states when you have comprehensive you don’t charge you more for it. So that’s something to think about.
The other thing that companies don’t typically tell you, if you’re a renter; if you add renters insurance to your policy a lot of the times it’s cheaper, it depends on what your price is and this is the way they calculate it. If you are in a state that has expensive car insurance so for example I’m in Michigan we’re paying $300 a month for a car let’s say or two cars in my situation if I added renter’s insurance onto that typically you’re going to get about fifteen to twenty five percent off. So getting an even ten percent. I’m getting $30 off in my renter’s insurance. Most likely won’t cost more than $20. I’ll net an additional $10 in savings and I’ll have up to like a million dollars of liability depending on the level you picked in that, and now I’ve covered that along with my personal belongings and all that other stuff.
The insurance companies have multiple companies
The insurance companies don’t typically tell you, or don’t want you to know that they have multiple companies. That’s kind of weird, because all state owns Assurance. Liberty Mutual own Safeco, progressive has progressive direct. There are just so many companies farmers own 21st century and foremost. Some states because of the laws they can’t necessarily recommend that second product. In some other companies like for example Allstate in Assurance we don’t believe you can call an Allstate agent and get a quote for Assurance. So even though it’s the same company you’re more likely to get a cheaper deal with the Assurance brand, because it’s more digital, it’s more online. You’re not you’re kind of cutting out that middleman. Not to say that the agents aren’t important, but that’s where your independent agents come into play most of your independent agents are going to work with multiple companies. We’re not telling you that you should go drop your agent if you’ve got a relationship with them. Sometimes, it’s not worth it to check to ruin that relationship. Other times it is good.
Home or renters insurance
Another thing the insurance companies don’t typically don’t want you to know is home or renters insurance. Sometimes adding more coverage is cheaper, with some renting companies we’ve seen this happen quite often. A lot of companies will coach you 15,000 for property damage; that’s like your TV and your couch and all that. We typically standardized to 25,000. A lot of times if we put you to 30 or 35,000 the price doesn’t change at all.So you get those additional benefits at no extra cost.
Insurance for a specific period of time
Some insurance companies don’t want you to know and this is kind of one of those tricks that some people play on companies. But there are some companies out there that don’t require that you’ve had insurance for a specific period of time. Some companies only require that you just have had insurance. As long as you had insurance for a day, they give you that full credit of having prior insurance; most companies require that you have had at least six months of prior insurance, to give you that prior insurance discount. In this is a huge discount, this can cost you hundreds.
We hope this was helpful share it with anyone that you think would get a good advice out of this.
Read also: If You Don’t Have Pet Insurance, Read This!
