So I've spent about 10 or 11 years helping people purchase insurance for home, auto, umbrellas, all the main things for what we call personal lines. And I've learned a lot of things that people do and some habits that almost everybody does that are just the wrong ways to go about purchasing a policy.
So in today's, we're going to talk about the seven ways or seven mistakes that people typically make when purchasing car insurance. Now, this kind of pertains to home and renters and all that other stuff as well, but it's more geared towards the auto portion. So let's dive right into it. Number one is everybody wants a better price.
That's pretty common. Even when I teach salespeople, when you're talking to customers, what's the It's the one thing that they want. They always want a better deal. But they don't think about all of the benefits that they can get on top of that. So when you have an accident or have a claim, if you just call around and start shopping and you don't figure out what coverage you want ahead of time.
You're going to compare a whole bunch of different quotes against each other without being accurate to see whose is better and whose is worse. Because you're doing that, you're also not getting a lot of the times towing and road service. One company might quote it, one company might not. Other companies might do rental car coverage.
But how much are they giving you? Is it 50 a day? Is it 30 a day? Personally, I like the lower amount because I'm willing to pay extra when I'm renting the car because it's very rare that I have a claim. So those are some things that you have to think about. Do you even want towing or are you going to buy a AAA membership?
There's a lot of coverages that you need to learn and know about, which is what this whole channel is about. So don't worry, you're going to learn it. I've got a whole bunch of one on one videos on here if you are interested. So that's one of the main things that people forget to do is they don't understand what they're looking for.
So in this process, you really just need to ask yourself, what do I want? If I were to build the perfect policy, do I need towing, road service, rental car? Do I want GAAP insurance? Do I want a savings bank, which is also called a vanishing deductible? Do I want cash back? Some companies offer they'll give you two to five, two and a half to 5 percent back every six months to a year, depending on your policy, when you have no claims.
By doing that, that's going to save you money long term. You're going to pay an extra portion or piece for that. But if you're saving money on top of getting those coverages, it might be worth it for you to decide it. Because mainly you're going to get that money back at the end. What I find is to have a whole package with certain companies, you may only pay 100 to 150 more a year, but it gives you 100 to 120 back.
So essentially you're only paying a couple dollars a month to have accent forgiveness. Claims free renewals, all of these extra benefits, the upgraded towing and road service, OEM equipment parts, that's the original manufactured parts, instead of the off brand NAPA. Not always the best, but that's, most people want that.
Especially if you have like a Toyota or Lexus or Mercedes or one of the better cars that need those original equipment parts. Not all policies are the same, so there's huge differences between them. I'm not trying to confuse you, But it's good to know what options are out there and if companies will tick those boxes for you.
The second way is people buy higher deductibles. It's something that I see commonly and I tested a little bit and tried this with a few customers in the past. This was back at a fairly not favorable position where we were just trying to sell anything and everything under the sun. Sun and we would have long conversations with customers and you could tell they were droning you out because you kind of threw some fun, exciting, fake stuff into the call.
So you would talk about something that made no sense at all, and they would just be like, Uhhuh. Yep, yep. I got it. I got it. Yeah. So we're gonna cover you for bodily injury. 100, 300. The Towing's gonna come with it. You're gonna get. A muskrat and a mouse mixed into your car, and they're going to bite the wires.
And then we're going to give you a 5, 000 deductible. Yep. Yep. Sounds great. I love it. It sounds good. How much is the price? Let me buy it. So be very careful. Pay attention to the person on the other end, what they're really offering, that they're not raising your deductibles to make them a cheaper deal.
Number four, it seems really basic, but there's a really in depth portion to it, which is the discounts, understanding which discounts you're qualified for and some discounts that you can get in the future. If you guys want to get more in depth with the discounts, keep watching this video, but I will link up here another video that goes over the top 11 discounts.
I personally am using eight or nine, I believe of those. So there's a lot of savings that you can get that will knock the bill 10, 20, 30 percent down. And that leads us to number five, which is kind of a combination of everything we've talked about, which is asking enough questions. I commonly see that people, when they get into a 5 to 10, and if you're quoting home with it, it can be a 20 to 30 minute conversation because there's a lot of details.
You know, the square footage of your house. The type of cars you drive, who's driving what, who are these people that might live in the house? What is, there's a lot of questions and they tend to drone a lot of that out, like we mentioned earlier, but the questions start to fall off because they more so just want to get that final number and see what the comparison is through their checkbook and not through what they're getting.
So don't rush through the call. If you're talking with an agent live, or if you're doing it online. Take a little bit of time. It's going to take a few more minutes to sink in and completely understand it. If you're dealing with an agent that has been seasoned or they know what they're talking about, then they're typically going to make sure that they teach you something.
That's the goal in every call I do, is to make sure you understand, one, what you're purchasing, two, that it gives you enough benefits, and three, that I'm meeting your expectations as far as the value. This channel always is about value based selling. And when we talk about that, it's what is important to you or what do you perceive valuable that I can include in the policy that will be something that benefits you either now or in the future.
And number five is probably one of the most important. What is kind of an old school way to shop for insurance is just calling different companies. If you have a list or if you've been on my previous channel, I've recommended several companies and sure. Pick up the phone or go on their website and do the quote, because those are likely going to be the best options for you.
But if you're new and you're just starting to shop, it's going to take you days to find the right company. And I don't want you to not do that. The reason I say that is because most companies have been combined into one. So what that means for you is there's. And there's companies or agencies that can quote multiple companies.
For example, I work for an agency that quotes up to 17 different companies in 21 different States. We've got a lot of reach in different places we can go. I also on this channel, I've worked with an app that quotes similar in multiple States, up to 30 companies. And you don't have to talk to a live person, so you can do it right on your phone.
You can fill it out. You can even text them. And then if you want a phone call, you can where ours is more of the phone call portion, which is also great for those that want that advice and need that hands on option. I'm actually going to link both of those below. So if you are interested in getting a quote from either me or that other company, it's perfectly fine.
Whatever fit is best for you. If you're the type that is like my dad and you want a call. Three main companies, then feel free to leave me a comment below. Let me know what state you're in and I'll try to recommend some companies that I can think of that would be a good fit in your area. Also in that same comment, let me know your age, because that does play a factor on which profile or which company is typically best for your state.
And number six is doing what's cheapest. That kind of goes back to the first piece. is where you're just buying based on price. It's not always the same. There are no apples to apples in insurance, sort of. You can do apples to apples if you know what coverage you have already and they know that you like the coverage that you have and it's going to be a fit.
But things change. You move, you buy a new car, you get married, you have a ticket. All of this happens and the company that was great today may not be the company that's great for tomorrow. So know that there's different options, but when you're going from company A to company B, yes, make sure the agent isn't taking advantage of you, but also make sure it's not just about price.
The agents understand that. That is the number one thing people ask for, so they are going to try their best to get you the best price. But it doesn't mean that you have to cut the coverage out to get that best deal. And that dives right into number seven, which is getting advice. The advice should come from somebody that's in the industry or has had experience.
Typically a parent is going to be really good with advice if they know what they're talking about. Not everybody was taught insurance. It's no different than when you got out of high school and you got out of college and you started budgeting. You started making adult money and things started happening and all of a sudden you ended up with a hundred Nerf guns and A whole bunch of candy.
You got a dentist bill that you can't pay. That's, that's me. And you're just like, crap, no one taught me how to balance a checkbook. It's the same thing. No one taught me how to shop for insurance. I just joined mom and dad's policy because it was easy. And now my best friend, Billy is telling me what I should do because he gets a really good rate with X company and that company does amazing.
Well, go ahead and ask Billy what coverages he has eight out of 10 times. I can. bet you that he doesn't have a clue what his liability limits are, what his property damage is, whether he has a vanishing deductible, or any of the key benefits that might be something that you want. If he does, then great, I'll take the advice and use it.
But if he doesn't understand what he purchased, you may not want to take the advice from him or her or whoever's giving that out. Advice is pretty freely given. There's a lot of it out there. Just be careful on which pieces you're listening to. And the bonus tip that I want to give you is When you find the deal that you want, make sure that you know what you're looking for.
Don't wait. If you're waiting because it's a money thing or a time thing, perfectly fine. But if you're waiting because you're just not quite sure it's the right move, as long as you've compared and make sure the coverages are the way that you like them and you like the price, don't be afraid because some companies will knock six to seven to 900 off your budget.
I flat out cut five grand off of one guy's bill. It's amazing how giving somebody the right company, the best fit for the person, and they're looking for that type of client is going to get you the best price. Now, I'm not saying you're necessarily going to save that much. Most companies save an average anywhere between four to 800, depending on who you're with and who you're switching to.
But once again, it falls back onto the other pieces of the equation. If you guys didn't get any of this, let me know in the comments below. I'm going to put different sections here so you can go back to each section. If you didn't quite grasp one piece or if you were taking notes, feel free to jump back to that section and re watch that part.
Happy to answer any questions if you have them. Don't forget to like, subscribe if you want more. Turn the bell icon on because there's great value. We're going to save you time, money, and teach you what the right insurance coverage is for you. And lastly, if you guys haven't already, go ahead and watch the insurance 101.
If you want to learn about insurance, otherwise go ahead and watch the 11 discounts that you need to know about. That video is a little bit over a year old, but it still stands true with the discounts that are offered. Most of them haven't changed over time, and if there are new ones, I will definitely make a video for that, which is why you want to turn the bell icon on.
I'm Mark with Think Insurance. I'll see you in the next one. watch full video
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