Often, you may get it twisted and think that your insurance agent is your buddy. However, whether you have auto insurance, home insurance, renter’s insurance, or whatever type of liability or casualty coverage you can name, your insurance agent is trying to make money off of you. Insurance is a multi-billion dollar industry, and your agents are trying to maximize their company’s profits.
Here are some of the top secrets that your insurance agent would prefer you didn’t know about.
A Quick Settlement Isn’t Always Best
It might be nice to imagine yourself getting a big payday in the form of a quick, lump settlement. However, this is often the wrong call: if you get a lump sum, it’s taxed at a different rate and you almost always get less up front. Instead, try to angle for a structured settlement when possible, as you will end up reaping more rewards over longer by doing so.
If You Don’t Smoke, You Pay Less
Whether we’re talking about term life insurance, auto insurance or homeowner’s insurance, if you smoke, you pay more for coverage. There’s no two ways about it. If you smoke, then you’re paying more, across the board, for your insurance. As such, strongly consider quitting if you do smoke, or simply continuing to avoid the habit if you already don’t smoke. This will save you a ton of money.
Low Premiums Hide High Costs
Your agent might show you a great low premium rate that sounds too good to be true. You may jump right on that, thinking that the coverage is too cheap to pass up. However, these low premiums are often hiding some high, unwieldy costs behind their shiny low premiums. Things like low coverage limits, high deductibles and the like could make your insurance much pricier than the sticker price makes it seem.
Don’t Get Too Much Coverage
On the flip side, make sure you aren’t getting way too much coverage for your situation. If you’re driving a ten-year-old car, insuring a very small house, or getting life insurance for yourself at age 30, you don’t need to be spending big bucks on your premiums. Why get insurance to cover expenses that aren’t likely to occur?
Striking a balance between reasonable premiums and good coverage isn’t as hard as it sounds. Just make sure you’re shopping around, checking out different quotes for policies with the features you need to make sure you’re getting a good deal. Your agent doesn’t want you to know that you’re in control of your own insurance!