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Writer's pictureTripp Insurance

Unveiling Insurance Secrets: Little-Known Facts Clients Should Know

Updated: Oct 3, 2023

Many of our clients are unaware of some lesser-known facts that can impact their coverage and decision-making. In this blog, we uncover hidden insurance secrets to ensure you have a

comprehensive understanding of your policies and can make informed choices when it comes to protecting yourself, your assets, and your loved ones.


Fact 1: Your Credit Score Can Impact Your Insurance Rates

Insurance companies often use credit-based insurance scores as one of the factors in determining your premium rates. Studies have shown a correlation between credit history and insurance claims. Maintaining a good credit score can help you secure lower insurance premiums. Regularly review your credit report, correct any errors, and practice good financial habits to keep your credit score in check.


Fact 2: Insurance Policies Have Specific Exclusions

Insurance policies come with exclusions—specific situations or circumstances where coverage may not apply. These exclusions can vary depending on the type of insurance policy you have. Take the time to carefully review your policy documents and understand the exclusions to avoid surprises in the event of a claim. If you have any questions or concerns, consult with your insurance agent for clarification.


Fact 3: Replacement Cost and Actual Cash Value Differ

When it comes to property insurance, there are two common methods of determining the value of a covered loss: replacement cost and actual cash value (ACV). Replacement cost coverage pays to repair or replace damaged items at their current market value without factoring in depreciation. ACV coverage, on the other hand, accounts for depreciation and pays the current value of the item. Understanding the difference between these two valuation methods can help you choose the right coverage for your needs.


Fact 4: Bundling Insurance Policies Can Save You Money

One of the lesser-known benefits of insurance is the opportunity to bundle multiple policies with the same insurance provider. Bundling your auto, home, or other insurance policies can often result in significant savings through multi-policy discounts. Consolidating your policies under one insurer not only saves you money but also streamlines the claims process and enhances your overall coverage.


Fact 5: Insurance Coverage May Extend to Rental Cars

If you have an auto insurance policy, it may provide coverage for rental cars in certain situations. Review your policy documents or contact your insurance provider to understand the extent of coverage and any limitations that may apply. This knowledge can help you make informed rental decisions and potentially save you money.


Arming yourself with lesser-known insurance facts can make a significant difference in your

coverage, premiums, and overall insurance experience. Remember, knowledge is power, and

with this newfound understanding, you can confidently make informed decisions to protect what matters most.

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