How do I know if I'm overpaying for my insurance?
- bryanmcclean
- Feb 2, 2022
- 3 min read
Managing your expenses can be an overwhelming and stressful topic in a families household. The rising costs of goods these days can put strain on your monthly budget. As a father of four daughters, I can relate to the feeling of being stretched thin or penny pinching. Insurance isn't a topic most households discuss very often, but here are some things to consider to see if you're overpaying for your insurance portfolio.
Price matters when shopping for insurance, but remember coverage pays. Find an insurance plan that makes sense!
Tip #1 - I've been with the same company for years.
Compare Carriers Quotes
Utilizing the expertise of a local independent agency can help keep those dollars in your pocket. The ability of comparing quotes from several different carriers for you not only saves you time, but in many cases, saves you money. Having access to over 40 carriers can ensure the right policy at an affordable rate is matched with your needs.
Tip #2 - Lack of Discounts
You see commercials from insurance carriers that reference discounts and the importance of it. If you are not seeing several discounts on your policy its is likely you are overpaying. Insurance carriers want to offer the best available rates to their ideal clientele, but it's up to you and/or your agent to maximize these offerings. Here are some of the most common discounts.
Multi-Policy -insuring your assets within the same agency and/or carrier will save you big
Claims Free
Telematics- 60-90 window into your driving habits can save you up to 30%
Newly remodeled home- new roof, new electrical, new plumbing, and new HVAC can cut your home insurance rates up to 60%
Workplace recognition- what you do for a living can save you on insurance premiums
Relationship- Married or Recently married?
Advance Shopping- quote your insurance 7 days or more into the future effective date
Low Mileage- If you drive less than 10,000 miles a year you could save on premium
Good Grades- Youthful driver? 3.0 or higher GPA can make adding a young driver to your policy less of an impact on your wallet
Property Management- Do you own investment property? Is it managed by a professional property manager?
Tip #3 - Haven't reviewed your policy
I often times hear people say they haven't reviewed their coverage since they purchased their policy years ago. Doing reviews at a minimum annually can ensure that the coverage you are paying for is aligned with your needs as they change. Perhaps your vehicle is older and having comprehensive and collision coverage is no longer necessary.
Tip #4 - Double Coverage
Paying for Roadside assistance or towing coverage on your auto policy? I have many clients that have AAA membership, but came to me also having towing/roadside on their auto policy. Double coverage isn't always a good choice. Do you have a diamond ring insured on your home policy but you don't have the ring anymore?
Tip #5 - I've worked really hard to improve my credit
We have all been there, you made some bad choices prior and your credit rating tanked. Have you made great strives to improve your credit situation over the past few years? Insurance score/financial risk is a major contributor to your insurance rating. Yes, in most states your credit rating is used in conjunction with several other matrix to determine what you pay for insurance.
Take the Insurance Test to see if you're overpaying!
The most important take away is to make sure you are reviewing your portfolio at least annually. The most common mistake new clients were making, they were paying for assets that they no longer owned or haven't needed for some time. Take the insurance test to see how you rate!
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