3 Things Your Insurance Agent Won't Tell You

As a recent owner of a property and casualty license, I used to work at one of the big national insurance companies. Amongst the big names in insurance are Geiko, Liberty Mutual, and State Farm. Unfortunately, I can't tell you which one of thesse companies I worked for, but I did work for one of them.

There are 3 things your insurance agent won't tell you. Why won't he tell you? He simply doesn't want you to know. But trust me, if you knew these things, you'd be much better off.

If you let your auto insurance cancel for non-pay, you might as well say goodbye to a good quote. When you let this happen, it gives a signal to prospective insurance companies that you are not a good customer when it comes to meeting your financial responsibilities. It's almost like a sign that you may have a bad credit score. So whatever you do, don't let your insurance cancel for this reason. If it goes past due, that's fine. But find some money to pay it before it cancels or you will have a very hard time finding a reputable insurance company with a good quote to take you on as an insured.

Most insurance agents care about the sale more than the person. Even though, an insurance agent may be selling something that would protect you at the time of your death, what an insurance agent really cares about is how much you paid for the premium.

An insurance agent might try to sell you whole life insurance when universal or term life insurance is better for your financial situation. A whole life insurance policy costs a whole lot more than a term or universal life insurance policy. An insurance agent will tell you that when you buy a term life, you are getting less of a return on your money. That is true. However, a universal policy combines the benefits of both a term and a whole life insurance policy into one. And it does it for a cheaper price. So before you choose a whole life policy, find out about all of your options.

Your credit score plays a hidden role in your insurance quote. Your insurance agent won't tell you this, but when your automobile quote is calculated, your credit score is definitely factored in. It doesn't even get labeled with a acronym you are familiar with when this happens. Your credit score is a factor because many people in the automobile industry believe that a person with good credit is less likely to have accidents. Students with good grades get discounts for the same reason.