3 Things You Should Do to Get the Lowest Price on Your Auto Insurance
Photo by Artem Beliaikin on Unsplash
Saving money is essential in today's economy, and it's even more important when it comes to auto insurance. With rising inflation, finding the lowest price possible on your auto insurance can be a great way to make sure you're making smart financial decisions. And by making smart financial decisions, you're giving yourself more time and money for the things in life that truly matter. So your first stop might be to call your current insurance agent or the competition to get some quotes...
But Here’s What They Don't Want You to Know
There are a few behind-the-scenes tips and tricks to getting the most savings and the best deal possible when shopping or reviewing your auto insurance, but here are my top 3 pieces of advice...
Don't mention how much you pay
Vet your insurance agent/salesperson
Shop around
Don't Mention How Much You Currently Pay
Photo by Dmitry Demidko on Unsplash
Telling a salesperson how much you currently pay for insurance can backfire because they may use that information to try and pressure you into accepting an offer that isn't necessarily in your best interests.
When it comes to ANY sales job, the pressure can be immense to meet quotas. This often leads some desperate salespeople to use discounts that weren't meant for you in order to get a sale. These discounts may not last and could result in higher prices than what was initially promised - plus, you'll likely never hear from the same person again if they work in a call center! Some storefront agencies are even structured so that you only get to deal with a 'service team'; you won't get to talk to the original salesperson ever again and hold them accountable!
As an insurance agent, it's important to ensure you're always getting customers the best deal possible, regardless of how much they were paying before (there's literally no 'discount' for someone who currently pays low or high).
The only exception where I would say it's okay to mention how much you currently pay is if the agent is one that you trust. This is to save you both time and create fair expectations. This may surprise some, but many people I've worked with in the past were very uncomfortable, though natural, telling me "No." "Jon, you're way out of the ballpark because I'm paying half of what you're quoting me, let's try again next time" and would rather say "I'll get back to you", but then that means we take up time to play email/phone tag until I hear a "no". I'd rather hear a 'no' than a 'maybe'.
Key Take Away
Just let them work up a quote without knowing how much you pay and once you receive one, verify that all the discounts and information is entered correctly.
Vet Your Insurance Professional/Salesperson
Photo by Van Tay Media on Unsplash
I've been an insurance agent in a few different offices before starting J Lee Insurance Agency. One of the most infuriating things for me was listening to a colleague on a call quoting a current or prospective client and miss discounts they should have known could apply. They then provide the customer an incorrectly inflated price, then bam. We never hear from the customer again.
Whether you have an insurance agent, whose office staff you regularly communicate with, or you just called GEICO and connected with a random call center representative, screen how experienced and knowledgeable they are.
You could be getting a 2-20 licensed agent with years of experience or someone who started a week ago (yes, some agencies actually throw new people right into the frying pan like that).
Getting an insurance quote isn't simply plugging a name, date of birth, address, and car into a calculator and getting a number. An agent has to be knowledgeable on how and when to apply discounts to every individual's unique situation. This can literally mean, and I've seen it happen, a quote that is either a thousand dollars more or less expensive.
"How long have you been in insurance?" A lot of times they can just fib the answer on this.
"Explain X coverage to me and why I specifically need it" This is where you can catch the inexperienced representative; an inexperienced representative means higher chance of discounts being missed. The answer you want is the legal and financial implications and how they relate to you specifically.
"Will you guys jack up my rate?" The answer that should be a red flag for this representative would be "no" or "unlikely". At the agency level, let alone a call center representative, we have no idea whether rates go up or down. Rates are based on numerous variables but the common ones are: accident statistics (which we've seen that pandemics can greatly influence), politics and laws passed regarding insurance, and the financial health of a company. Who could have predicted COVID? The aftermath of Hurricane Ian? Or Kias and Hyundais suddenly becoming super easy to steal?
The Answer You Should Be Looking For, to Know You Have a Quality Professional to Form a Relationship With
"I have no idea. But tell you what, when time comes for renewal and you're not happy with what you see, I'll do my damnest to make sure you're happy by seeing what I can dig up as far as new discounts or at least we understand the rate change because, realistically, sometimes it's not always possible".
Shop Around Multiple Carriers
Photo by Christin Hume on Unsplash
Shopping around with multiple insurance carriers is one of the smartest things you can do to make sure you're getting the best deal on your coverage. Rates are always changing, and it pays to stay informed. Comparing rates from different companies allows you to find the best value for your money.
An experienced insurance agent can be a great asset in this process, as they can provide tailored advice and help you find the policy that fits your needs. It's essential to determine if your agent is able to offer policies from multiple carriers (i.e. an independent agent) or just one (i.e. a captive agent) before making any decisions.
Independent agents/agencies (like J Lee Insurance Agency) offer unique advantages that could make them worth considering when searching for coverage. They are able to provide you with access to multiple carriers which might include Liberty Mutual or other well-known companies according to certain state regulations. Having this wider selection means you have more options to choose from so you can determine which policy best fits your needs and budget. This includes discounts, coverages, and premium prices which may result in bigger savings.
A captive agent typically works exclusively with one specific insurance company. Independent agents usually won't have access to the captive agent's company. State Farm is an example of this. You might not get the same level of choices or options as you would with an independent agent, but they still can offer good protection, fair premiums, and responsible advice to ensure you get the right policy at an affordable rate.
Bonus Tip: Lowest Price Isn't Always Best
There are so many coverages on an auto insurance policy that an agent could strip away and get to a low price. But at what cost?
Photo by Clark Van Der Beken on Unsplash
A true, personal story I tell clients all the time is: when I was still in college, I was driving home late, 11PM after work, on 6 Mile Cypress Parkway. Instead of going straight home, I decide to stop by McDonalds. I need to take a left. I'm tired and hungry so I misjudge the speed of the oncoming traffic and suddenly BANG! Everything is spinning, there's engine smoke everywhere, and a sharp pain on my left knee. In the other car, two guys hobble out holding onto their injured body parts. My fault. They were incredibly nice about the accident though and we kept up with eachother to make sure the other party was okay. No major injuries, just whiplash and bruises. But later in my insurance career, I found my accident records and saw that that my insurance company had to pay them $20,000 just for those bruises. Right up to my policy coverage limits at the time. Anything more than that and I probably would have had to declare bankruptcy and have my wages garnished by the state for years.
So yeah, saving $20 a month is nice, but so is not getting sued and the shirt taken off your back because mistakes can happen to anyone on a bad day. That's what insurance is for, so make sure you have coverage suitable for your current life situation.
All in all
Thanks for taking the time to read J Lee Insurance Agency's first article. I hope this was helpful to you and hope this creates a more informed consumer, regardless of whether you're a current client of J Lee Insurance Agency or not. But if you are ever curious about whether you have a policy that appropriately protects you or whether or not you truly have the best deal out there right now with the most savings, I'd be happy to review it with you and can easily be reached at (239) 355-5587 by call or text, email at [email protected].
Hopefully, I'll hear from you soon!
