The Top 5 Tips to Get the Best Insurance Offers Available for Your Family

November 16th 2022

Article by: Celia Santana

President & CEO Personal Risk Management Solutions

There are many things in the world occurring that people do not agree on. The list is long. Almost everyone agrees, however, that all consumers want to have the best insurance options available. The following are 5 things you can do to improve your odds of having the most favorable insurance outcomes:

1. Do not submit small claims.

Many people do not realize that statistically speaking, frequency breeds severity. This means that if you have several claims in your history, you are likely to have a significant claim in the future. Insurers prefer to underwrite prospects that are counting on their insurance for the catastrophic claim, and not for the smaller ones.

2. Maintain good credit and pay your bills on time.

Where permitted by law, insurers use credit as an underwriting tool. The industry results show that people who pay their bills on time or in full are better risks, meaning an insurer is more likely to have a profitable relationship. If your account goes to cancellation status for failure to pay your premium, this could cause your rates to increase or cause you to be disqualified from the most preferred rates.

3. Buy newer construction.

Right now the industry is experiencing significant catastrophic activity and deterioration of the aging US housing stock. This is leading to a dramatic increase in property damage claims in many locations. As a result, the best insurance rates go to the newest housing exposures, which are typically built to the most current building codes. They often have better technology and smart systems that can help avoid claims. These homes generally experience fewer losses, which is why most insurers give premium credits for new construction. In particular, if you are purchasing a home in an area that is catastrophe exposed and subject to storms, earthquakes or wildfires, you are often better off NOT buying an older home. In Florida and California, this is particularly important.

4. Teach your teenagers to drive responsibly.

If you have driving teenagers in your household, encourage them to take a defensive driving course, require them to stay off their phones while driving, submit their good grades to your insurer for a discount and whenever possible and do not submit a claim unless there’s no choice. Youthful, inexperienced drivers are prone to losses and in some cases, significant claims. If you want to have good choices for auto and umbrella coverage, do everything possible to teach your children to drive responsibly.

5. Try to maintain a longstanding relationship with your insurer.

Insurers value loyalty and often give discounts for long-term clients. They are also known to compete aggressively for new customers. If you hop around from insurer to insurer within a few years, you may save some money, but you will not be as desirable a client as a one who has a long relationship. You have a better chance of getting a desirable result when you have been with one insurer for many years. That being said, there are times when it does make sense to switch providers, particularly when you have had a bad experience with an insurer.