To make you agree to take out an auto insurance policy, the insurance agent will hide some things from you. In the agent’s opinion, the less you know, the better for the agent and the company. Is it unethical? Perhaps. But what will you do about it? You can get angry, and say you will never take out an insurance policy, but we both know that is unwise. So what should you do? Do what I would do: learn the things they don’t want me to know, and then keep a sharp look out whenever I interact with the agent. And that’s the information I will be empowering you with today. So what doesn’t your insurance agent want you to know?
1. That he is getting a hefty commission on your insurance policy
Oh but Tom is so nice. Yes, I know. But Tom is a salesperson. It’s his job to be nice. For every policy Tom sells, he receives a nice, fat commission. You are essentially paying the company to pay him. So Tom’s livelihood depends on you renewing your policy. So what wouldn’t Tom say or not say to ensure you keep renewing? Remember that when you are renewing your policy and Tom comes around.
2. He doesn’t know as much about insurance as he claims
Not to knock the competence of insurance agents, but not all of them know what they are doing. Some are new on the job. Others just couldn’t be bothered to do the research. Some, however, are exemplary. But in many cases, doing your own research, for instance online, will be more fruitful than asking your agent directly.
3. The company may wrongfully declare your car a total loss
Your car may be repairable, but the company will declare it a total loss. In that case, they will pay you a lower amount than the car’s actual value, and then resell the car at a profit. Ethical? Perhaps not, but auto insurance companies do it. Be watchful.
4. Your rate isn’t dropping anytime soon
Insurance agents have mastered the art of stringing you along, convincing you without saying those actual words, that your premiums will drop in future. I am sorry to be the bearer of bad news, but they won’t. They will stay up, and most likely they will go up.
5. The company doesn’t like to make payouts
One thing you must never forget: the insurance company is running a business. They do not wish to have more cash going out than is coming in. So they try to watch the downside. They dislike it when you make large claims or frequent small ones. Though they may give the payout, they may also start looking for loopholes that will enable them to drop you, seeing as you have proved to be an “unprofitable” client. Cold? I don’t know. It’s just business!
These pointers make it seem as though auto insurance is a racket run by conmen. In reality, there are many good car insurance companies out there. Companies that have been around for decades. Honest companies. But the other kind also exist, and it doesn’t hurt to be prepared. Arm yourself with knowledge, and no one will be able to get anything past you.