I 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 in some habits that almost everybody does that are just the wrong ways to go about purchasing a policy so in today's video we're going to talk about these seven ways or seven mistakes that people typically make when purchasing car insurance now this kind of pertains to a home and renters and all the 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 sales people when you're talking to customers what'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 who's 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 fifty dollars a day is it thirty dollars 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 101 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 gap 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 five percent back every six months to a year depending on your policy when you have no claims by doing that that's gonna save you money long term you're gonna 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 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 a hundred 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 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 uh-huh yep yep i got it i got it yeah so we're going to cover you for bodily injury 100 300. the towing is going to come with it you're going to 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 yup yup 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 today 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 five to ten 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 on every call i do is to make sure you understand one what you're purchasing two that it gives you enough benefits in 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 then 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 apps 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 have 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 to 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 and 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're 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 8 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 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 nine hundred dollars off your bill i've 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 gonna get you the best price now i'm not saying you're necessarily gonna save that much most companies save an average anywhere between four to eight hundred dollars depending on who you're with and who you're switching to but once again it falls back on to the other pieces that we talked about if you guys didn't get any of this let me know in the comments below i'm gonna 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
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