Many people hate having to deal with insurance and even just hate the concept in general. There are a few reasons for this, but the main one is that they feel they are unable to control the fact that they are not only required to pay for it but also can’t control the cost. You’ll have an insurance agent that will tell you the price and insist that it’s the best option. So what choice do you have? You just have to bear it and pay what they ask, right?
How Insurance Companies Set Their Prices
Well, not necessarily. Many people are surprised to find that that’s not the case. With insurance companies, there are certain factors that they look for when determining how much you’ll have to pay. They use a large set of parameters to determine their rating, so we want to ensure that we provide them with as many factors as possible to put those parameters in the best light so that different insurance companies find it desirable.
If they see that specific insurance account as desirable, they will start becoming competitive so they can acquire it rather than their competitors. This leads them to drive down their prices to be more appealing to the account holder.
How Do I Get a Good Deal on Insurance?
Sure, there are other ways to save money, like raising deductibles and lowering limits, but that won’t be nearly as effective if they don’t view the account as desirable. While they’re trying to sell you insurance, you’re also, in a way, trying to sell them the account at the same time. It’s all about making a good pitch and convincing them that this is an account worth obtaining, even if they need to lower their prices for it.
By presenting your business in the best light possible to these competing insurance companies, you force them to realize that they won’t lose money on this account, making them look better. If they believe there’s little to no risk involved, they’ll do about anything to get it. Encouraging them to be aggressive with the pricing is the ultimate strategy when you want to save money on your insurance.
