How Can I Manage My Insurance Rates?

By: Woop Blog Group
Tuesday, January 3, 2023
How Can I Manage My Insurance Rates

Rates for all lines of business are rising, and this has left many consumers trying to figure out what they can do to manage them.  Here are five things we, at Woop, recommend to all the policyholders we service:

Shop Around

Shopping around and comparing quotes from multiple carriers may help you find the best rates possible.  Be sure to compare “apples to apples,” so that you are getting quotes for the same types and amounts of coverage.  This is important!

Increase Your Deductible

Increasing your deductible can lower your rates.  A deductible is the amount you must pay out-of-pocket before your insurance kicks in.  Essentially, it is an unsophisticated form of self-insurance.  Carriers deploy deductibles to eliminate small claims and encourage policyholders to take loss control seriously.  If you increase your deductible, be sure you can afford it in the event of a claim.  The higher the deductible, the lower the premium.  The lower the deductible, the higher the premium.  Deductibles and premiums operate inversely.

Here’s an example.  Let’s say you get into an accident and your vehicle suffers $1,000 worth of damages.  If your collision deductible is $500, your carrier will deduct that from the settlement amount, so you’d get a $500 check to cover the repairs.

According to Forbes, here are the potential savings by carrier if you increase your $500 deductible:

How Can I Manage My Insurance Rates

Take Advantage of Discounts

Many carriers offer policyholders discounts for things like having multiple policies with them, possessing a good, clean driving record, or even installing safety features in your vehicle.  Ask your carrier about the discounts you may be eligible for!

Review Your Coverage

Make sure you’re not over-insured or underinsured.  If you have too much coverage, you may be paying for protection you don’t need.  On the other hand, if you have too little coverage, you may not be adequately protected in the event of a claim.  Just like the Goldilocks story, find the porridge (coverage) that is juuussstttt right!

Improve Your Risk Profile

There are many ways you can improve your risk profile and, consequently, lower your rates.  For example, elevating your credit score, taking a defensive driving course, or installing a telematic mechanism in your vehicle (Progressive’s Snapshot; Geico’s DriveEasy; USAA’s SafePilot), may help.

You probably have a million thoughts running through your head right now.  Don’t worry – it’s totally normal!  Today is your lucky day because we, at Woop, offer services and technologies that tell you which insurance company will offer you the best possible rates, and our new consumer dashboard creates a free, individualized profile for each and every person, explaining, precisely, what factors determined your rates.

Does this pique your interest?  If so, hit us up directly!

How Can I Manage My Insurance Rates