When searching for insurance, it’s never a bad idea to be a little more informed. Here are a few quick things that you should keep in mind when searching for your new insurance provider.

“Bad Credit? You’re gonna pay for it in high premiums.”

One of the biggest ways insurance providers determine the cost of your insurance is through looking at your credit history. 9 out of 10 insurers use credit histories in their underwriting. They have found a strong correlation between low credit scores and more claims. What does this mean for you? If you want to pay less for insurance, make sure your credit score is looking good when it’s time to start looking for new insurance.

“We agents want better commission – at your expense.”

Always remember that many insurance agents won’t have your best interest in mind. Sometimes they may try to set you up with extra coverage that you may not need in order to get better commissions. Always know before hand what you need coverage for and don’t be quickly swayed when they say you also need this and that – many times you don’t. This is why it’s always a good idea to get multiple quotes from different agents from different companies. This allows you to get an “average baseline” of what the costs are for what you want and it also enables you to filter out the agents that are trying to add extra nonsense that you don’t need.

“Your totaled car is not worth as much as you think.”

In the auto insurance realm when your car is totaled, you may think you’re getting good value for it when offered an amount from your insurance company. The truth is, many insurance providers get their valuations through claims servicing companies that may undervalue the cost of the car. This is why we advise that you do not quickly accept the first compensation offer from your insurance provider. See what the estimated Kelley Blue Book value of your car is first. If it’s being undervalued, show them and ask for an offer that matches your car’s Kelley Blue Book price.

“Staying and renewing with one insurance provider may cost you.”

In this day and age, insurance rates can be very different from company to company. It may be easier to simply renew your insurance policy year after year with your current provider, but you may be missing out on much nicer discounts with other companies. It’s always a smart idea to at least browse around for new quotes every year just to see how much money you can save. Nowadays with the internet, it couldn’t be any easier.