I’m currently working in the commercial insurance side of things in the US. But have a decade of experience in the personal lines side as a broker selling standard and non standard policies for dozens of insurance companies.
One thing a lot of people don’t seem to know is insurance companies offer better rates to those who carry higher limits of liability on their auto insurance.
For example if you currently carry state minimum limits. If you increase your limits to 50/100 or 100/300 even just a month before your policy expires, when you renew or shop around for a different carrier your prior insurance report will show the last limits carried so you will get better offers and you can just decrease your limits on renewal or with your new carrier. I’ve noticed this to be the case when writing rewriting for insurance companies.
This may not work for everyone’s especially those who already carry high limits and need them but with so many people asking for help on lowering their premiums I wanted to share this information it might work in some insureds favor.
Posted by 8lackmatt3r
4 Comments
It’s true. It puts you in a better risk tier as people that drive around with state minimums are lumped in to statistics for drivers in that coverage bracket, and tend to be the riskier, more claim prone drivers on the road. If you separate yourself from that pack, you will start to find you are being rated better by companies. I always tell people, if we can’t offer them a price that will make them switch, or customers that are leaving us for price, to make sure their limits of liability stay above state minimums. That way, not only are they better protected, they will potentially see better rates in the future if we can quote them again.
Ngl when I saw the title, I half expected somebody suggesting some sort of fraud that people don’t realize is fraud.
But it’s nice to see something instead that not only isn’t fraud, but also incentivizes people to have better insurance limits too!
I did not know this but that does seem to make sense. Not sure why this post is being downvoted, probably people trying to claim this is “fraud” but I challenge someone who says that to find any specific policy language that would suggest that without being incredibly vague.
Hey…for once a useful tip that isn’t actually fraud! 🤣