INSURANCE HACK-HOW YOU CAN HELP CONTROL YOUR RATES!

As you all are aware, rates are going up, up, up. (Like everything else). There is a lot that goes into insurance rates. Part of it you really cannot control and part of it you can to an extent. 

1. Your credit score is used when determining rates with most carriers (where the law allows). I do not make the rules. I am just here to help you all navigate them. Do what you can to try to keep your credit score up as that determines your insurance score (think of it as a insurance credit score).

2. Making a large amount of comprehensive claims CAN and usually does affect your rate. It will not affect your rate as much as an accident, but it does affect it. I am seeing a increase in carriers that are not even accepting clients with more than 3 comprehensive claims in 5 years. This limits your carriers that you are accepted by which means a higher rate usually as let’s say carrier A was a better rate than carrier B but carrier A will not accept you...so now you are stuck with carrier B. 

3. If you get a ticket (It happens) do NOT just pay it. I am not an attorney so I cannot direct you on the legal side, but I can tell you it will affect your rate. Often if you go to court, they will have you pay it and reduce the ticket to a non-moving violation that will not affect your rates. It is worth a try. I know it can be a pain going to court, but it is pain paying more for insurance for 3-5 years (Depends on carriers how long violations stay). 

4. With homeowners’ insurance-withdraw the claim if it is going to be a ridiculously small payout. An example is, recently I had a customer that I pulled their insurance reports, and they were being declined by carriers for a water claim (water claims tend to make insurance companies nervous as usually if you have one you have multiple as the home has underlying issues).  The client had a $150 payout. I can tell you by comparing my carrier options the client was paying about $900 more a year due to that claim. I do not want to discourage filing claims as that is NOT the case. That is what insurance is for. With the current market though, just be careful and think of these things. Do what you can to minimize losses. 

5. Glass claims. My AZ clients especially have more glass claims than my clients in other parts of the country (it is just part of living in a rock pit ha!). ALWAYS get a chip fixed when it first appears. Even if you do not have $0 glass coverage with most carriers a chip or small crack (Smaller than a dollar bill usually) can be fixed. If it is fixed it does not affect your rates like a $500 windshield claim. 

6. If you cannot make your payment on time call the carrier or myself and we can see what we can do. I would much rather you adjust coverage (even if temporarily) than to go without. Even a 1-day lapse in coverage can double your rates and dramatically limit insurance companies that will accept you.

I hope this helps you understand navigating insurance a bit better.

We are here to help!