Many people assume that insurance agents have control over the rates they offer, but the truth is quite different. In reality, an insurance agent does not have the power to arbitrarily lower your premium or adjust your rates. This fact may be surprising, but understanding how insurance rating works can help you make more informed decisions about your coverage.
A knowledgeable insurance agent plays a crucial role in helping clients find the best coverage. Their job is to:
However, one thing they cannot do is arbitrarily change or lower insurance rates.
Insurance is a highly regulated industry. Every state has strict regulations that govern how rates are determined, and these rates must be approved by the state’s insurance department. Insurance companies calculate premiums based on numerous factors, including:
Some agents claim they can lower your insurance rates, but this is misleading. The reality is that they can only assist in maximizing discounts and selecting policies that best match your needs. If an agent tells you they can reduce your premium at will, that’s simply not true.
While agents can’t directly change your rate, they can help you take steps to lower your premium, such as:
Your insurance premium is not something an agent can manipulate. Instead, they serve as your advisor, helping you find the best policy by leveraging discounts and ensuring proper coverage. If an agent promises they can lower your rate on their own, be skeptical—it’s simply not how the industry works.
At the end of the day, working with a knowledgeable and honest insurance agent is the key to getting the best coverage at the most competitive price.
For expert insurance advice and coverage options, contact us today!
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