If you are wondering if your insurance rate is any good, you are not alone. A lot of people want to be extra confident that they are getting the best deal possible. With all of the information out there today, it is possible.
Here is what you need to know to guarantee you get the best deal possible:
1. What is Covered?
Check your insurance policy to see what all is covered. You might feel like you're getting an excellent rate right now. However, upon further review, you could find out that essential accident coverage is lacking. This lack of coverage could be a disaster if you have to hire a lawyer later on due to higher bills for the accident. Working with an expert risk manager can alleviate these fears because you get a custom policy tailored to your risks.
2. Deductible vs. Premium
There is a difference between having a reasonable rate on your premium and having a fair deductible. The premium is the amount you pay monthly or annually. It may seem low at first, but at a second glance you might look at your deductible and realize you have to pay a lot out of pocket if anything were to happen. This can turn a cheap policy into an expensive one real fast. So ask yourself what is more important: lower monthly bills or a more moderate bill in the case of an incident.
Just remember, according to Lavent Law, “if your injuries have caused you significant pain and discomfort, you can seek compensation...taking time off from work to recover is normal, but it can result in lost income.” So, just be sure that all your bases are checked when it comes to your insurance policy.
3. Compare
You can always find a lower rate when you compare them online. Many insurance companies have built-in comparison engines but if you shop through a broker, they can give you unbiased options. That way you can see if you're saving money or spending more than you would with a different insurance carrier. Beware though; not all companies will compare all of the coverage side by side. Working with a broker is always the smartest decision as they can help you compare insurance carriers in ways that might extend beyond the premium.
4. Ask a Friend
Sometimes, using social proof is the best way to make a decision. Ask around in your friend and family circles to see what others are paying. Although everyone has different policies and coverages, with personal lines it can be a little easier to gauge whether or not you should call up your carrier and reassess your situation. If your family or friends premiums also went up, it may be a location-based rate increase, like we had in Colorado after the hail storm.
5. Ask for a Discount
Discounts are great. Everyone loves getting something for a cheaper price. So, take your time to do your homework and look for discounts. According to NerdWallet, “the only way to ensure you’re getting the best deal is to shop around.” Utilize your local broker to have them shop for you! A lot of people think they save when going directly to the carrier, but you tend to lose out on better service and quotes from different companies.
If you ask for a discount and they grant you one right away, take it as a sign. It means they were overcharging you before and they didn't have to. It might be time to start looking around for a new provider.
When it comes to knowing if your insurance company is any good, it can be a difficult decision. Your rate should be your number one factor. Of course, there are others to consider as well. Use the metrics above to determine if your insurance rate is as good as they say it is. If not, consider switching to a company that better suits your needs.