You know that feeling you get when you find $20 in your pocket? Imagine finding $500!
And if you can find that kind of money without cutting the budget, that’s even better! So what’s the trick? It’s quick and easy—all you have to do is take a look at your insurance policies. And while that may not sound like a fun way to spend an afternoon, you might be surprised by how much you can save.
Old Policies Could Cost You
When it comes to insurance, most people like to set it and forget it. Four in 10 auto and homeowner’s insurance customers have had policies with their current company for more than 10 years, according to a study by Deloitte University Press. In that amount of time, your insurance needs can change. But we keep those old policies, believing our loyalty is earning us a discount.
Phil H. found out that wasn’t true when he finally took a good look at his home and auto insurance. He and his wife had used the same insurance company for more than 20 years, until he consulted an independent insurance agent for home comparison quotes.
“Our agent helped us save $600 per year on our home and auto insurance,” Phil told us. “That savings will go to our debt snowball—we’re almost there!”
Phil’s agent was able to find him a better deal because independent agents aren’t tied to one insurance company. They’re able to shop and compare policies from several companies to find the right coverage at the best price.
Big Names Could Mean Big Bucks
The biggest companies in the insurance industry pour millions of dollars into advertising to build that name recognition among potential customers, according to data from SNL Financial. That’s how big companies convinced many insurance customers that they offer lower prices and more convenience.
But those who buy their insurance directly from insurers like these soon have a change of heart. Nearly 40% of homeowners and 30% of auto insurance customers who bought direct said they would work with an agent to buy their next policy, based on research from Deloitte University Press. Clients of independent insurance agents are much happier with their coverage. According to the same study, three out of four people who bought their insurance through an independent insurance agent say they got a better price.
Michael H. knows he got a better price. “I saved 43% on my homeowner’s policy and 38% on my auto [insurance],” he told us. “And both policies provided better coverage.”
Michael and his family will save $700 on their coverage this year, and all it took was one phone call.
More Than the Bottom Line
An independent insurance agent does even more than help you save money. Your insurance agent can also:
- More clearly explain your coverage
- Make sure you are fully covered
- Assist in getting claims paid quickly and fairly
- Better represent your interests
Financial Peace University