Insurance is a good business but it’s also a very competitive one. The fact is that most insurance companies are not screwing over their clients. In fact, from what I saw on Quora, the average company has been making a 2% profit margin on average off of the premiums that they collected over the past 7 years. I’ll grant you that some insurance policies are probably much more profitable (annuities for example) but in other cases such as auto and home insurance, the chances are that if you got quoted a price that seems high, it could be that your expectations were incorrect.
First Thing To Do
Obviously, as is the case for any insurance shopper, I think it’s important to get quotes from at least 3 different companies and you can also try going through an insurance broker, especially if you have one that you know and trust. That is especially true if you’ve been with the same company for a while and their premiums have kept increasing. For some reason, companies think that we’ll just accept the big raises. I guess in a way the majority does. It’s certainly worth looking around once in a while to make sure that whatever you’re paying is competitive.
The next Step: If despite looking you seem to be unable to find a deal anywhere close to what you expected or hoped for, it’s worth asking yourself a few questions.If someone could make money by insuring you at a lower price, there’s a decent chance that they would. If they’re not stepping up, it’s likely because they think it would be a losing proposition.
Can Your Risk Factors Diminish?
It’s worth looking into a few questions. What type of insurance are you looking for and what are the risk factors. If you are looking for car insurance and you’ve had a few accidents or speeding tickets, you can probably see why no one is trying to give you a great deal. Do you need a home insurance but live in a crime-friendly neighborhood? Looking for travel insurance but you’re going to spend a couple of months in Iran?
What is causing your premium to be so high?
Can You Do Something About It?
There are all kinds of things that could be done.
-Had a few speeding tickets? Wait a few months or a year and try again, quotes might come down a bit.
-Having trouble with your home insurance? How much would it cost if you got a home security system?
-Looking for life insurance but you’re a smoker? How much would it come down if you stopped?
-Maybe switching for a trip to a safer destination would help a great deal