Here is what your auto & home insurance provider may not be telling you
You’re online, shopping around for auto and home quotes. On your lonesome, it can be a tough process. If you’re new to buying insurance, you may not quite understand the difference between various policies, what your personal requirements are, and where to be looking. Are you aware of how homeowners and auto insurance policies work? Is your new provider your best resource? Well, yes and no. A great help when it comes to undergoing the insurance-buying process is an insurance broker. An insurance broker, like our experts here at Panda7, has years of experience selling insurance and advising new buyers in the industry, and is more than happy to help.
Where do our brokers excel where your auto and home insurance providers may fall short? Read on for some tips and tricks for when you’re looking to buy insurance, but you need a little expert “push” in the right direction. We’re here to help.
No. 1: Claim advice – never file a claim for a loss that is under $1,000
When something disastrous occurs where damages have resulted, your first instinct might be to run to your insurance provider. Wait! If those damages are cumulatively less than $1,000, you should refrain from making a claim. But why? Well, because usually, people will have a deductible between $250 and $500 – some even $1,000 or upwards that you’ll have to pay towards the repairs regardless – which will mean you’re still paying out-of-pocket considerably – and you’ll have to brunt a premium increase. Over time, these costs can outweigh what you received for a claim of under $1,000. For small repairs and damages, you should have an emergency fund you can use.
No. 2: Working with a broker is not the same as working with an underwriter or agent
Underwriters and agents may have a limited selection of insurance providers they can work with, meaning that going through these professionals will reduce your variety of choices. You may not get the best rates for the best price. What’s the alternative? Well, a broker, of course. Brokers work with various insurance companies and don’t favourite – meaning they’ll be working for you first to help you find the best rates. They’ll help you shop around if you’re not satisfied with your existing insurer’s rates. They’ll even give you advice should you ever need it and negotiate on your behalf if the time ever comes to make a claim.
Yes, brokers work on commission. But next to the amount you’ll save, the cost is negligible. The net savings are still worth it!
No. 3: Some insurance premium factors are out of your control
Your rates have gone up. Your first thought might be, “but why? I haven’t made a claim!” Well, here’s the thing about that: not all premium factors are within your control. In fact, things such as climate change increasing the frequency of disastrous weather events causing property damage globally, insurance fraud rates around the country, and rising rebuild costs are all impacting our rates whether we see it day-by-day or not – and we may not be aware that this is the case.
Yes, obviously personal changes will affect your rates, like if you start driving more, if you move locations, if you add a younger driver to your auto insurance policy, or if you’ve recently been in an at-fault incident where there was thousands of dollars’ worth of damage – but those are obvious. What’s less obvious is when supply chain issues combined with a high demand for housing materials cause our home’s rebuild cost to skyrocket, making it much more expensive to insure.
No. 4: You can potentially opt-in for a credit score for a reduced premium
Your credit score isn’t typically taken into account when calculating your rates, but you may be able to opt-in with some providers for a credit check and, if your score is good enough, be rewarded with a considerable discount. A healthy credit rating can offer you better rates for your car loans, mortgage, and personal loans. If your credit score isn’t so great, you can do your part by paying all your bills on time which, in the future, can help you qualify for lower premiums. Note that a credit score check may only apply for discounts on home insurance policies.
No. 5: Even if you get turned down for coverage, there’s still ways to find insurance
Some people have criminal records or massive convictions on their driving history that make it difficult to find insurance. They may even have had an insurance policy cancelled due to non-payment. Things like this can remain a “black mark” on your record and result in future insurance companies becoming resistant to agreeing to insure you. A good option for you is to search for high-risk insurance markets. A broker can help you search through these markets to find the right option for your circumstances. You’ll have to pay a much higher premium in instances like these, but your coverage options will – overall – be much less expensive than before.
Panda7 is comprised of a team of friendly, knowledgeable brokers who will do their very best to give you the optimal customer experience. We want you to understand your home and auto insurance in a way that gives you peace of mind when insured, knowing you’re getting the best rates for the best coverage. Get a free home or auto quote with us to begin today.
