I've worked in the insurance industry for a number of years and I've been dying to tell the public all of the inside secrets. Secrets your insurance agent will never tell you, not because they don't wan to, but because they can't.
YOU SHOULD SHOP FOR INSURANCE EVERY YEAR PRIOR TO YOUR RENEWAL DATE!
The reason is because your insurance policy "rate" is variable. That means, if your current company increased rates that year, and even if you haven't had a claim, your policy is going to increase. So go find a company that has implemented a rate decrease and pay a lower premium.LONGEVITY DOESN'T MATTER!
It does not matter if you have been with the same company for 20 years or for 1 year, if they increase the rate, your rate will increase. If you call and say "But I've been with you for 20 years and never had a claim" it doesn't matter. So shop your account with other carriers.AGE MATTERS!
It is true that your clean driving record and turning 25 will decrease your insurance rate, but its all downhill from there. Once you hit 60+ you will find that the rate will increase every year after that. So shop your policy! Some carriers charge double for age, but a DO NOT!LOW DEDUCTIBLES HAVE HIDDEN SURCHARGES
If you have a $250 or less deductible you will pay more for your insurance. I have seen hidden surcharges (the client does not see it on the policy but I see it on my end) up to $175, just because someone had a low deductible.IF YOU HAVE HAD THE SAME POLICY FOR 5+ YEARS YOU'RE PAYING TOO MUCH!
If you have not sat down, called or emailed your insurance agent to review your policy you do not have the best coverage or the best price.AUTO COVERAGE LIMITS DO MATTER!
Check with your state to find out how much you are liable for should you be in an at fault accident. Let me explain....
Each state says your must have a certain amount of coverage in order to drive a vehicle, but that limit does NOT reflect the amount your state says you are responsible to pay.
Example: Lets use the State of Maine as an example. The minimum amount of insurance required is 50,000 for bodily injury and 100,000 for liability BUT the Maine State Law says if you are involved in an auto accident you are responsible for a maximum of $400,000.
Doesn't add up does it?
Stay tuned for my next post which will explain the differences and benefits between Direct Insurance Carriers and Insurance Agencies.