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Is there a truth to “Save 15% on Insurance ads?”

Is There Truth to "Save 15% on Insurance" Ads?

By Ravi Kulkarni

We’ve all seen those eye-catching advertisements promising to save you 15% or more on insurance. But is there any truth to these claims? Let’s take a closer look at how insurance pricing works and what you should know before falling for these enticing offers.

The Reality Behind Insurance Discounts

Many insurance companies advertise significant savings to attract new customers, but the truth is, insurance is heavily regulated at the state level. These regulations limit an agent’s ability to provide arbitrary discounts or adjust pricing like in other industries. Unlike retail businesses where prices and discounts can be set at will, insurance rates are strictly controlled by the insurance carriers themselves.

Can an Insurance Agent Really Lower Your Price?

Unfortunately, the answer is no. An agent has no control over the base price of the insurance product you are purchasing. The carrier dictates the price based on a wide range of risk factors, including:

Your driving record
Age and gender
Credit history (in some states)
Type of vehicle
Claims history
Where you live
Policy coverage limits and deductibles

So when an insurance agent calls and claims they can lower your rate, be skeptical—it’s often a marketing tactic to get you in the door.

How Can an Insurance Agent Help You Save Money?

While an agent cannot directly lower rates, an experienced agent can help you uncover discounts you may not be aware of. Here are some legitimate ways you might save money:

Life Events: Turning 25 or 26, retiring, or getting married can sometimes qualify you for lower rates.
Bundling Policies: Combining auto, home, and other insurance policies with the same provider often leads to multi-policy discounts.
Good Driving Discounts: Many insurers offer savings for accident-free records and defensive driving courses.
Low Mileage Discounts: If you drive fewer miles annually, you might qualify for reduced rates.
Payment Discounts: Paying your premium in full rather than monthly can sometimes reduce your costs.

The Difference Between Captive and Independent Agents

If you are working with a captive agent (who represents only one insurance company), your options are limited. These agents can only sell policies from their company, meaning they cannot shop around for better deals.

At Insuranceisland, we were a captive agency for 10 years, and we saw firsthand the challenges customers face when stuck with just one carrier. That’s why we now operate as independent insurance agents—giving you access to over 25+ top-rated carriers so you can find the best coverage at the best price.

Understanding Insurance Carrier Rating Systems

Our founders have extensive experience in insurance technology and carrier rating systems. They played a key role in optimizing how insurers calculate rates, helping companies improve their pricing accuracy. Because of this expertise, we understand exactly how rates are determined—and how to help you get the best possible deal.

The Bottom Line

Don’t fall for misleading advertisements that promise huge discounts without any real backing. Instead, work with an independent insurance agency that can provide expert guidance and ensure you’re getting the right coverage without overpaying.