Hey guys mark Flockhart today we're gonna talk about the things that insurance companies don't want you to know and so I made a list of all the things that I think that they don't want you guys specifically to know there's kind of some cheats and some tricks and I'm not telling you that you should be doing these I'm just gonna go over this.
You can kind of see some of the things that I've seen over the last thing you're selling car home and umbrella insurance the personal lines as we call it so the number one thing I'm just gonna start off with the best I'm gonna give you the gold right up front these number one things that car insurance rate you on is your liability portion.
Because back in 1927 as you watched my other video that's where insurance became mandatory right so that was the reason is you had to cure it well there's different levels of risk so let's just say an insurance company there's five levels will say level one is lowest person eighteen sixteen year old driver had an accident had a ticket.
Almost nobody wants to insure that person then level two is the next person up we've got a twenty five year old driver who does have a tick in an accident and we've got a twenty five a thirty year old driver who doesn't haven't taken accident we got if it keeps going when you get close to your eighties that kind of comes back down.
And that risk goes up so what's happening is that liability portion is being rated against so what kind of liability do you need versus what kind of liability limits do you have hope I'm not losing you because it's a little bit tricky and I'll just tell you the quick answer in a second but what it does is that liability risk so your state has.
What's called a minimum a state minimum liability so whenever you call an insurance company and you have a junker car you're asking for P LPD personal liability and property damage because most states require you to carry your property damage so when you're saying I want just PL PD they might ask you what liability limits you want that.
Determines your risk not what you're gonna pick but what you already have so if you have a higher liability risk coming to an insurance company it's a lower risk because you've already proven that you're responsible enough to know that you want a higher limit to protect you better typically when somebody has the 100 / 300 if you don't know what.
That means I'll link my video 101 understanding that but when someone has that one thousands of person 300,000 for accident coverage then that will give a lower risk to the insurance company in turn that will typically save you a lot in some states it's hundreds of dollars so make sure that when you're doing this.
That you're carrying the right liability limits so the second way thing that the insurance companies don't want you to know specifically is when you have comprehensive and collision so comprehensive and collision are really good things but most people don't realize that comprehensive is almost nothing it's really cheap to have so.
That if you hit a deer or have glass damage or someone steals your car it's good to have that extra coverage yes if you're driving a clunker car it might be cheap to have but it's almost worthless to use it so what I've personally done is I carry just a low deductible and comprehensive I have $100 deductible not necessarily because I think I'm gonna.
Claim something at $100 but if I do hit a deer it's less I have to pay out-of-pocket and the reason I do that is it's probably only costing me like three to five dollars a month to up that to lower that limit to $100 collision is the opposite so collisions where the risk is at right if you are at fault or not at fault if you're in an accident it.
Doesn't matter collision you've collided then that's covering your car no matter what the situation is third thing is more of a recommendation than what you need to know is because a lot of people don't know that when you need to file a claim you should get advice because what typically I see a lot is these companies.
Will tell you for ease of use call us we're gonna help you out the most we'll just make it simple well being simple doesn't necessarily save you money so when you have a claim if you hit a curb or if you hit a car or if something happens and it's pretty minor if it's not your fault or your fault there's a lot of things to think of does my state.
Charge me for not at fault accidents so should I claim that does my state charge me for a fall accident almost everyone does but okay scenario there how much was the damage how much was the damage of the person I hit are they gonna file a claim against me so if I'm gonna pay for that out of pocket I need to make sure I take the steps that it doesn't go.
On my insurance because at the end of the day if I pay the claim and the guy calls and claims it anyways then I'm kind of just double screwed myself now I've got an at fault accident I've paid out pocket money and then the insurance is just gonna say okay now your rates are going up some states when.
You have comprehensive you don't charge you more for it so that's something to think about most states do I think the only state I've really ever seen this in was in Florida and it wasn't that they're charging different but what they did is when they added that coverage onto their policy it lowered the risk so I've seen something more often than not.
In Florida you add a specific liability limit so let's just say $100 deductible or if you didn't want it $1,000 deductible on comprehensive and it actually lowered the total price you've got more coverage but it cost you less the fifth thing that companies don't typically tell you about the agency that I work for tells you all the.
Time is if you're a renter if you add renters insurance to your policy a lot of the times it's cheaper it depends on what your price is and this is the way I calculate it so if you are in a state that has expensive car insurance so for example I'm in Michigan we're paying $300 a month for a car let's say or two cars in my situation if I added renter's.
Insurance onto that typically you're gonna get about fifteen to twenty five percent off so getting an even ten percent right I'm getting $30 off in my renter's insurance most likely won't cost more than $20 so I'll net an additional $10 in savings and I'll have up to like a million dollars of liability depending on the.
Level you picked in that and now I've covered that along with my personal belongings and all that other stuff is the thing that insurance companies don't typically tell you or want you to know is that they have multiple companies that's kind of weird because all state owns Assurance Liberty Mutual own Safeco progressive has progressive direct.
There's just so many companies farmers owns 21st century and foremost so you've got all these companies that's just for that I thought of off the top of my head that have multiple companies some states because of the laws they can't necessarily recommend that second product in some other companies like for example Allstate in assurance I don't.
Believe you can call an Allstate agent and get a quote for assurance so even though it's the same company you're more likely to get a cheaper deal with the assurance brand because it's more digital it's more online you're not you're kind of cutting out that middleman not to say that the agents aren't important but that's where your.
Independent agents come into play most of your independent agents are gonna work with multiple companies like that for example I work with Safeco that's owned by Liberty Mutual they're pretty much the same company I found that they usually have lower prices and then I work with triple-a there's triple-a agents that only sound triple-a but I've.
Got Safeco and triple-a and Liberty you know off there's like 17 companies that I've worked with in the past at once so you can go with these independent agents and they can typically give you a lot better deal than those larger companies keep in mind I'm not telling you that you should go drop your agent if you've got a relationship with them sometimes.
It's not worth it to check to ruin that relationship other times it is good so if you know somebody that is an independent agent if you don't know an independent agent I'll put a link below feel free to fill out a quote with me and I'll send it over to one of the agents that I work with another thing the insurance don't typically tell you.
Or want you to know is home or renters insurance sometimes adding more coverage is cheaper with some renting companies I've seen this happen quite often a lot of companies will coach you 15,000 for property damage that's like your TV and your couch and all that we typically standardized to 25,000 well a lot of times if I put you to 30 or 35,000 the.
Price doesn't change at all so you get those additional benefits at no extra cost the ninth thing that other companies don't want you to know and this is kind of one of those tricks that some people play on companies but there are some companies out there that don't require that you've had insurance for a specific period of time so some.
Companies only require that you just have had insurance the ones that I work with aren't this way so we probably wouldn't be the best fit for you here but I have seen in the past with other companies worked with as long as you had insurance for a day they give you that full credit of having prior insurance most companies require that you have had.
At least six months of prior insurance to give you that prior insurance discount in this is a huge discount this can cost you hundreds if not more I've seen this like you could get denied in some states completely just for the fact that you don't have prior insurance we typically aren't the best fit for you because our.
Rates are too high when you haven't had them for six months what we do is we refer you over to a different company that is better with those rates because in ultimately we want you to get to the place you want to be we hope that we're the right ones for you in your vineyard for us and we're for you right we're a fit and that's great but if you're not.
At least we can get you to the right place in the last portion of things that insurance companies don't want you know is more of a teaching point for agents so a lot of agents don't understand this and I even came across this recently I replied to a reddit post that said hey I own a property I have my house and I own a property next to it and because.
There's a fence on that property or there's like a shed or something that's not a home it's just an item that's a physical thing on that property insurance is telling me I can't insure the liability portion that way if someone comes on their fall something happens they want to make sure they're not liable for that the insurance will.
Pick it up I replied my answer and I said okay here's what I recommend and I actually had a couple agents kick back and say no no no you can't do that it's because there's a fence on the property they can't insure it well my suggestion to the person was is talk to your agent have them call the underwriter because you as the customer don't have access to.
Their underwriter it has to go through the agent and so they called the underwriter it was completely okay they wrote them a liability risk because at the end of the day that yes or no person is that underwriter what they do is they assess the risk and determine if it's worth what they want so in this situation this person had a home and.
Probably auto with them I don't know because I was just answering it freely and they said you sure why not this is a good risk they probably didn't have any claims with us they've probably been with us for a couple years and they're good client I don't see any reason why we wouldn't ensure that as a risk so that's kind of a trick that a lot of.
Agents I hope you guys learn this if your agents is definitely don't throw anything out talk to the underwriters and kind of learn what they will and won't let you do and that way you can ultimately serve the customers better anyways guys I hope this was helpful share it with anyone that you think would get a good advice.
Out of this if you liked it give me a thumbs up let me know in the comments below what are things that you have found that you think people are missing that they could get extra discounts or extra advice from that would help them with their insurance if you want to be part of the group I'd love for you to subscribe we're just gonna help you guys.
As best I can ultimately getting you better prices giving you more insurance I will see you guys in the next one