Secrets Insurance Companies Don’t Want You to Know – Slash Your Premiums Today!

Published Date: 11/08/2024

1. The Truth About Auto Insurance Pricing

Car insurance is one of the most widely purchased — and misunderstood — forms of coverage. According to Susman, the key to lowering your premiums is knowing what insurers really look at when setting rates.

Your driving record matters most — but not forever.

Speeding tickets, DUIs, and at-fault accidents can cause rate hikes of 20–100%, but they don’t last forever. In most states, moving violations fall off your record after three years, and accidents after five.

“The biggest mistake people make,” Susman explained, “is not checking their record and asking their agent to rerun quotes once violations drop off.”

Credit and insurance scores matter more than you think.

Insurers use an “insurance score,” which includes elements of your credit history — not to punish you, but because data shows people with better credit file fewer claims. Improving your credit score can directly lower your premiums.

Mileage and usage count, too.

If you’re working from home or driving less, your insurer should know. Mileage is a major rating factor, and switching to a low-mileage or “usage-based” plan (where you’re charged per mile or driving behavior) can cut costs dramatically.

Pro tip:

Don’t just call and say “I want cheaper insurance.” Tell your agent exactly what’s changed — fewer miles, better credit, new garage, improved safety features — and ask for a rate reevaluation.

2. Homeowners Insurance — The Silent Savings Opportunity

Homeowners insurance rates are skyrocketing, especially in California and other disaster-prone states. But Susman explained that many homeowners are paying for coverage they don’t actually need — and missing discounts they’re entitled to.

Re-evaluate replacement cost annually.

Your coverage should reflect what it costs to rebuild today, not what your home was worth when you bought it. Inflation, building codes, and material costs change yearly. If your policy hasn’t been updated in several years, it’s likely misaligned — either too high or too low.

Bundle smartly.

Bundling home and auto insurance often saves 10–25%, but only if both policies are competitive individually. Don’t assume bundling is always best — have your agent quote both together and separately.

Mitigation discounts are real.

California’s “Safer from Wildfires” program requires insurers to offer discounts for hardening your home — such as replacing roofs with fire-resistant materials, creating defensible space, or installing ember-resistant vents.

“You might already qualify for discounts you’re not getting,” Susman noted. “Most people just don’t ask.”

Raise your deductible wisely.

Raising your deductible from $500 to $1,500 could save hundreds per year, and it discourages filing small claims that could lead to non-renewals later.

3. Renters Insurance — The Best $15 You’ll Ever Spend

Many renters still skip insurance, assuming their landlord’s policy covers them. It doesn’t.

A landlord’s policy covers the building, not your personal belongings. Renters insurance protects your property from fire, theft, or water damage and includes liability coverage in case someone gets hurt in your unit.

“Renters insurance is one of the most undervalued products out there,” Susman said. “It’s inexpensive — often under $20 a month — but can save you tens of thousands.”

Hidden benefits:

• Covers your belongings anywhere (not just inside your apartment).
• Pays for hotel stays if your building becomes unlivable.
• Protects you from liability lawsuits, even outside your home.

Savings tip:

Bundle your renters and auto insurance — you could save up to 15% on both.

4. The Hidden Power of Life Insurance

Life insurance isn’t just about protecting loved ones — it can also serve as a financial planning tool. Yet many people misunderstand its value or assume it’s unaffordable.

Term vs. Permanent Insurance

Term life is pure protection for a set number of years (10, 20, or 30). It’s affordable and ideal for income replacement or mortgage protection. Permanent policies (whole or universal life) add investment and cash value components — useful for estate planning or long-term savings.

“The right life insurance is about timing,” Susman said. “Buy it when you’re young and healthy — that’s when you lock in the best rates.”

Insider secret:

Some life policies let you convert term to permanent without a medical exam later. Ask your agent before your term expires — it’s one of the least-known advantages in the industry.

Savings strategies:

• Quit smoking — rates can drop by 50% after one year tobacco-free.
• Combine coverage for couples — joint policies are cheaper than two individual ones.
• Compare multiple carriers — underwriting rules vary widely.

5. Pet Insurance: The Fastest-Growing Coverage

Veterinary costs have exploded, and pet insurance has become one of the most requested add-ons in the past five years.

“It’s not a gimmick anymore,” Susman said. “A single emergency vet visit can cost $2,000–$5,000. Pet insurance turns that into a manageable monthly expense.”

What to know:

• Policies vary widely — some cover accidents only, others include illness, diagnostics, and prescriptions.
• Waiting periods apply, so buy before your pet gets sick.
• Older animals can still qualify, though premiums increase with age.

How to save:

• Choose higher deductibles.
• Pay annually instead of monthly (many carriers discount annual payment plans).
• Enroll pets when they’re young — preexisting conditions aren’t covered.

6. Why Loyalty Doesn’t Always Pay

Insurance isn’t a subscription service — it’s a competitive market. Yet millions of consumers stay with the same carrier for decades without comparison shopping.

Susman’s advice? Don’t confuse longevity with loyalty.

“Companies count on inertia. If you haven’t checked rates in three years, you’re probably overpaying.”

Because each carrier adjusts rates based on loss experience, regional disasters, and market share, pricing shifts constantly. What was the cheapest carrier last year may be the most expensive today.

Best practice:

Re-shop your insurance every 18–24 months — or anytime you experience a major life change (move, marriage, credit improvement, new car, or home remodel).

Independent agents can compare multiple companies at once, often finding better rates and coverage without compromising service.

7. Avoiding “Discount Traps”

Discounts sound good — multi-policy, safe driver, student, loyalty — but they’re only meaningful if the base rate is competitive.

“A 25% discount on a policy that’s 40% overpriced isn’t a deal,” Susman joked.

Always look at the bottom line, not the percentage of savings. And confirm discounts renew automatically — some expire after a year if you don’t requalify.

8. The Claim Dilemma — When Not to File

One of the least discussed “secrets” in insurance is that filing too many small claims can cost you more than it saves.

Every claim you file — even if it’s denied — becomes part of your CLUE report (Comprehensive Loss Underwriting Exchange). Multiple small claims can trigger non-renewals or steep premium hikes.

Susman’s rule of thumb:

“If it’s under twice your deductible, pay it out of pocket.”

Reserve your insurance for serious losses — not minor inconveniences.

9. Building a Smart Insurance Strategy

Lowering your premiums doesn’t mean cutting corners. It means aligning your coverage with your real needs.

Here’s a recap of Susman’s “smart insurance checklist”:

1. Review policies annually and update key details (mileage, remodels, safety features).
2. Bundle strategically — only when it truly saves.
3. Ask about hidden discounts (professional, education, defensive driving, smart home).
4. Increase deductibles sensibly.
5. Avoid small claims to protect your long-term insurability.
6. Work with independent agents who can compare multiple carriers.
7. Don’t forget niche coverage — renters, pets, and life insurance all add critical layers of protection.

10. The Takeaway — Knowledge Is the Ultimate Discount

At its core, insurance is about managing risk. But as Susman reminded listeners, it’s also about managing information. Insurers use vast data sets to predict who’s likely to file claims — and price accordingly. The more informed you are, the better you can position yourself for lower rates and stronger protection.

“Insurance doesn’t have to be expensive,” Susman concluded. “It just has to be accurate — accurate coverage, accurate information, and accurate pricing.”

So before your next renewal, ask yourself: when’s the last time you checked whether your policy still fits your life? Because the best secret in insurance isn’t a discount code — it’s understanding the system well enough to make it work for you.