We all carry some type of insurance throughout our lives to protect the things and people that matter most. Many people find a company to begin coverage with and stick with them for the long term. They don’t question premium increases or coverage changes. They simply auto pay the bill and move on. When left unchecked, most insurance companies capitalize with increases that may or may not be reasonable. It is important to stay on top of your insurance payments and make sure you are getting the best price for the coverage you need.
Are You Ready to Start Tackling Your Insurance Costs?
When you’ve decided to begin evaluating your insurance costs, there are a few important steps to take.
- Compile a Complete List of Insurances You Carry: You must first understand which insurances you currently hold. Determine the type of insurance, the carrier, the premium, and the current coverage. Knowing these numbers will help you gauge the extent of your insurance expenses and ensure you make changes to improve that.
- Find an Insurance Agent: Insurance agents have access to a significant amount of insurance policies and understand policies best. Agents can help with coverage questions and can help meet your coverage needs. They have software available to them that can generate quotes much lower than you can ever find (even through online quote generators) so you can achieve automatic savings. I believe the best way to find an insurance agent is a referral from someone you know. I found my agent through a personal referral, and it allowed me to avoid a lot of upfront research and legwork that’s involved in screening agents and selecting the right one. If you don’t have anyone with a personal recommendation, you can next do an online search for a local, independent insurance agent. You can easily find reviews, credentials, and licensing online which may help with an initial selection of an agent. Next, request a face-to-face meeting to make sure your personalities align and that the agent is able to reliably respond to your questions and needs.
- Understand the Difference Between Independent Insurance Agents and Direct Insurance Agents: An independent agent is contracted through multiple insurance companies and thus will provide you quotes by looking across many companies. A direct or captive agent is contracted by one company and thus only receives commission from selling policies from that specific company. Consequently, you are likely to have more options and better options from an independent insurance agent than a direct one.
- Balance Coverage and Cost Savings: You want to find better premiums but you don’t want to lose valuable coverage. Have a conversation with your agent to determine your risk tolerance given the asset you are protecting. Some coverage may be unnecessary, while some may be worth the extra monthly cost. The agent can easily run the quotes to determine how much of an impact more comprehensive coverage will have on your premium.
- Run Quotes Every Renewal Period: Every time your insurance is due to be renewed, have the agent shop around for new quotes. You’d be surprised but often times you can find a better quote just by transferring companies or an insurance rewrite. This process is quick for the agent and means savings for you.
My Recent Savings
I use insurance agents for all the policies I carry and have saved tremendously on my premiums without compromising coverage. I have recently been shopping around for homeowner’s insurance and ran online quote estimates for major carriers. I then asked my insurance agent to run the same coverage on her database and give me the best premium she could find. With coverage being equal, my insurance agent was able to find a policy for 31% less than the best quote I could find online. 31% savings for the same policy? Seems like a no brainer to me!
Insurance coverage is a notable part of most people’s yearly expenses. Understanding ways to lessen the burden of insurance premiums is an opportunity we must all take to increase our financial fitness. Insurance agents present a win-win opportunity: reduce your rate without compromising coverage, all at no cost to you!
“Achieving Freedom Through Financial Fitness.”
Disclosure: This site may receive compensation from the companies whose products I review. This site is independently owned and the opinions expressed here are my own.