It breaks our heart to know that most people consider insurance a necessary evil and only want to “deal” with it when they absolutely have to. But is this approach a good idea? Probably not. Insurance is likely one of the biggest items in a household budget and should receive equal attention as such.

The more active you are with your insurance, the better off you’ll be. Not only will you realize the direct benefit of lower overall insurance premiums, but you may very well get a better understanding of your coverage, which could certainly help you out at claim time (why do insurance companies deny claims?).

So, if your answer to “when you shop your insurance” is NEVER, you may want to read our list of the top 10 times you should shop your insurance rate.

When It’s Best to Shop That Rate

1. Every Two Years – Insurers adjust their premiums regularly. Sometimes more than once per year. What you thought was the best deal around two years ago may not be so great today. At least get a few online quotes to see if you are still in the ballpark.

2. During Car or Home Purchase – You’re going to have to contact your insurance agent anyways. May as well ask if they can review your coverage to see if there are any new discounts you qualify for (discount double check). Also grab a few quotes to see if you should switch to another insurer. Of course, if you have a captive agent, you will be severely limited in with your options…go independent to snag the best deal.

3. Teen Driver Added – You knew it was coming and you knew it was going to be expensive (cost of teen car insurance). Your current insurer may loathe the newly licensed driver. This is a great time to shop around. The difference could be hundreds of dollars!

4. After a Ticket, Accident or Claim – Your current insurer may have been the best bet when your driving record and insurance claims history was spotless. But after a ticket or an accident your premium may skyrocket. There are insurers who specialize in insuring those of us with MVR and C.L.U.E. activity that are a little more “forgiving.”

5. Home Refinance – You spent a few hours working on your new mortgage loan to save some money. Why not spend a few minutes online obtaining home insurance quotes to save even more?

6. Credit Score Change – This is a great time to shop your insurance. Some insurers prefer perfect credit and others don’t even look at it. If you have great credit you should be rewarded with cheaper insurance. You may want to obtain quotes from non-credit scored insurers if your credit is less than perfect.

7. Age Milestones – While it may be a myth that your auto insurance automatically drops at age 22 or 25, it is always a good idea to get premium quotes from other insurers who may have lower rates for more mature drivers.

8. Off to College – If you are a college student or a parent of a college student, you may be able to save a few dollars by getting quotes for an individual who drives less or not at all while on campus.

9. Significant Home Improvements – Not only does your insurer need to know if your home has been updated (which may increase its overall replacement cost), but this is also a good time to shop your coverage and premium…you’re already on the phone with them!

10. Getting Married? – You’re going to have to combine your auto insurance anyway. Might as well shop. Also, you are likely acquiring quite a bit more “personal property,” which will need to be added to the form of additional coverage on your homeowners or renters policy in the form of increased contents coverage.

Final Word

Think of this tidbit as a bonus to our list. The biggest and most well known insurers are those who have the largest advertising budget. They collectively spend billions of dollars (your insurance premium) each year meticulously crafting an image to relay to the public.

If everything you believe about your current “chain” insurer is what you’ve been told by their marketing department and celebrity endorsers on television, it may be in your best interest to shop your premium with an independent insurance agent who represents insurers that don’t spend your money on attracting new clients. The savings could be significant.

How many times have you racked your brain to find extra money in the budget for life’s necessities? Shopping your insurance with an independent insurance agent may very well save you hundreds of dollars for the same or BETTER coverage. It’s FREE money.

Read more: 10 ways to lower your car insurance premium.

The relationship between an insurance agent and an insured should be a close one, built on mutual respect and most of all, trust.

Of course, there may be complaints on both sides. You may feel like your agent only calls you when he or she needs money, and your agent may feel like you only talk to him or her when you get into an accident or have a problem.

But like any other relationship between two human beings, there are likely going to be some white lies committed by both sides.

This article examines the top 10 most frequently told lies between insurance agents and their insured.

Of course, it’s important to note that these lies are the exception and not the norm. Most agents are hard working, helpful and honest business people.

First we’ll look at the top five white lies agents tell their customers.

Insurance Agent Lies

1. The lie: “This is the lowest insurance premium I can get for you.”

The truth: A captive insurance agent can never guarantee you the lowest available rate, as they only represent one insurance company. As far as independent agents go, some agents are partial to a specific carrier for ease of use or maybe they receive a higher commission from a particular insurer that doesn’t offer the lowest rate.

2. The lie: “You need to call the insurance company for help with that.”

The truth: Some agents, in an effort to minimize their workload, may instruct an insured to call their insurance company to make a payment or ask a billing question. In reality, most insurers are set up to allow agents to process payments out of their offices.

3. The lie: “You need this coverage to be safe.”

The truth: There are some unscrupulous agents out there that oversell coverage or policy add-ons. While it is recommended you always purchase as much coverage as you can afford, there are some basic guidelines you can follow regarding how much auto or homeowners insurance you might need (10 insurance policies you may not need).

4. The lie: “You don’t need all that extra coverage.”

The truth: Conversely, there is the agent who tries to get the lowest premium in town by skimping on coverage for their insured. Let’s face it, we’re all looking for a good deal, but when it comes to insurance, it’s better to have the coverage you need than a rock-bottom premium. When working with an agent, be sure to ask why they made the recommendations they made. If they can’t give you a straight answer, shop around.

5. The lie: “I will call you right back with that answer.”

The truth: Many insurance agents are small business owners. As such, they have limited time and a limited expense budget (when it comes to adding staff). Their goal is to have as many policies in force as possible. This often times leads to the, “I’ll call you right back” line, which may be said with the best intentions and not followed through on. You may need a new agent if yours makes it a habit of not returning your calls promptly.

Insurance Customer Lies

1. The lie: “Yes, I am the only licensed driver in the household.”

The truth: Agents know that insured often tell this white lie to avoid paying a higher premium for that family member who has MVR and C.L.U.E. report activity. Some insurers are capable of looking up relatives and others who have lived in your home or simply have the same name and force you to list or exclude them in order to issue a policy.

2. The lie: “I don’t have any tickets, accidents or insurance claims (that I can remember).

The truth: Almost every insurance company in America runs and MVR and C.L.U.E. Again, similar to #1, you probably won’t get away with playing the “foggy memory” card. The agent may be fooled, but the insurance company will find those speeding tickets.

3. The lie: “I don’t use my truck for business purposes.”

The truth: The ladder rack and the magnet on the side of your truck in conjunction with your paint stained clothing gives you away every time. For the record, it can be less expensive for a commercial auto policy than a regular personal auto policy in some cases, so there is no reason to tell a fib or worry about the cost.

4. The lie: “I do not run a business out of my home.”

The truth: Homeowner’s insurance policies typically offer “incidental business occupancies” or some other form of business coverage as an endorsement option to expand coverage for your small home-based business. If your business doesn’t fit that model, it is recommended you find an independent agent who can find you a policy that will allow your exact home business. At the end of the day, if you get caught in this white lie, you may have a claim denied.

5. The lie: “Yes, I want that policy and I will call you back with my payment information.”

The truth: This one hurts the most. If you are not interested, please say you aren’t interested. Agents should be hardened sales people, so they can take the fast “no” a lot better than a drawn out maybe. In fact, you’ll be saving them time and money, as they can move on to something else rather than spending time working a dead lead.

As you can see, most of the white lies going in this direction are told in order to save money, whereas on the insurance agent side, most are told to make money or avoid doing work.

Whether you believe a lie is harmless or not, when it comes to insurance, a lie can leave both the agent and the insured in a tough spot.

So whichever side you happen to be on, try to be as accurate as possible when selling/shopping for insurance. After all, it’s certainly better to be safe than sorry.

Tip: 10 ways to lower your car insurance premium.

Most consumers these days seem to be looking for simple ways to save a buck or two on their car insurance.

Fortunately, there are several ways to accomplish this feat with very little work.

Let’s look at the top 10 ways consumers can reduce their auto insurance costs.

How to Lower Your Car Insurance Premium

1. Lower Liability Limits to the State Minimum Requirement – Higher liability limits are typically more expensive. You might save a few bucks by lowering your coverage to the state minimum instead. This is not a great idea if you have a lot of assets to protect.

2. Raise Your Collision and Comprehensive Deductibles – Higher auto insurance deductibles will certainly lower your insurance premium. Just be sure you are financially capable of “eating” the deductible if your vehicle is damaged. (What is the difference between collision and comprehensive coverage?)

3. Drop Full Coverage All Together – It is only possible to drop full coverage auto if you do not have a loan or a lease agreement (loss payee). Also, be sure to consider that you would be responsible for repairing or replacing your car in the event you damage it. This is probably only a good idea for lower value vehicles. (Should I buy collision insurance on an older car?)

4. Remove “Bells and Whistles” – Are you currently paying extra for accident forgiveness, ticket forgiveness, and the like? Ditch it. Also, you may have roadside assistance as part of an existing group affiliation or through a credit card agreement. If so, don’t pay twice for this coverage.

5. Remove “No Fault” Coverage – Do you have med pay, personal injury protection or accidental death coverage? Other types of insurance may cover you against these potential losses. Personal injury may not be necessary if you have a good health insurance plan and accidental death coverage isn’t necessary if you have life insurance.

6. Discounts, Discounts, Discounts – Ask your agent or insurer to go over every available discount they have to offer. Perhaps your insurer added a few discounts since your policy was last reviewed. You may have money sitting on the table.

7. Remove A Teen Driver From Your Policy– It may make sense for you to have your teen get his or her own policy with lower liability limits than you might need. Your current insurer may not have an appetite for teen drivers. There are companies out there that specialize in higher-risk drivers and offer lower premiums than those who don’t. (How much is insurance for a 16 year old?)

8. Bundle Your Home And Auto – Yes, we know spending time on your insurance is the furthest thing from your mind. However, you might find that you’re missing out on huge savings by not insuring your auto and home with the same company. Take the time to call your agent and see if you qualify for this option. (Does bundling make customers happier?) (Can I switch insurers mid-term?)

9. Shop Around – Unless you live under a rock, you’ve noticed advertisements that detail how much money the average person can save by switching insurers. Here’s a tip; this usually only works for those of us who have been with the same insurer for more than two years. Switching every year may only save a couple of bucks here and there, but may still be worth your time.

10. Improve Your Credit – Your credit history (insurance score) is one of the most important factors in determining your premium. Of course, this can’t be done overnight, but working on it for a few months will save you thousands of dollars over your “insurance lifetime.” Open some new tradelines and make a few on-time payments if you are a younger driver. This is “key” to balancing out your inexperience behind the wheel.

BONUS TIP – Buy a GM vehicle in Oregon or Washington and General Motors will pay your first year’s car insurance premium, which is being offered by Met Life insurance.

Final Word

This probably seems like a lot of effort, but you can save some serious money. Compare insurance quotes online and/or visit an independent insurance agent to shop your rate.

Don’t take insurance advice from a paid celebrity and don’t make the mistake of thinking loyalty to an insurance company will pay off in the long run.

Note: It isn’t recommended you rush right in and do everything on this list without weighing the savings versus the risks. Saving $100 per year and not protecting yourself against financial ruin by opting for bare-bones coverage doesn’t make sense for everybody.

Many of the options below should be considered as a “last resort.” Insurance is more important than satellite television and owning the newest version of the iPhone (and the associated iPhone insurance).

Trust us; you won’t be able to pay for “4G” service if your wages are garnished for 20 years to pay for damages awarded to an injured party in an accident you caused.

Insurance agents hear a lot of misinformation from their clients on a daily basis.

So we thought it would help some people out by sharing the top 10 auto insurance myths circulating around insurance circles.

1. Red Cars Cost More to Insure: FALSE. If the year, make and model of any two vehicles are the same, the rate is the same. Now, if you have a convertible; that’s a different story.

2. Rental Car Coverage is Necessary: FALSE (if you’re already insured). There are two types of rental car insurance out there. First, you can purchase coverage to pay for your rental car if your car isn’t drivable after an accident (you need to have purchased physical damage coverage). Then, there is the scam where the car rental company offers you a Collision Damage Waiver or other insurance.

Tip: Many credit card companies will insure the rental against damage as part of your card agreement.

3. You Can Only Be Sued For Your Policy Limits: FALSE. You can be sued for an unlimited amount of money. If you lose; you can be responsible for whatever a jury awards in damages. Higher liability limits and a personal umbrella policy are recommended for protection against landing in the poorhouse in the event you seriously injure someone or damage their property.

4. Major Insurance Companies (Farmers, State Farm) Insure You Better: FALSE. Don’t believe everything your television set tells you. Many large, VERY financially stable insurers depend solely on independent insurance agents to sell their products – not Lebron James or any other TV actors.

Tip: Listen to a chef about food, a mechanic about your car, and an insurance agent about insurance. If you are interested in advice about acting or sports, that’s when you should consult a professional actor or athlete.

5. More Discounts Equal Lower Premiums: FALSE (most of the time). Quick question…which costs more? A policy that starts at $1,000 and is discounted 35%, or a policy that costs $600 with no discounts? There’s your answer.

6. My Insurance Policy Only Covers Me: FALSE. Coverage follows the vehicle. Almost anyone can drive your car.

Tip: Anyone who has regular, unrestricted access to your vehicle should be listed on your policy (picture your wife or live-in girlfriend). You ARE the ONLY person insured on a broad form policy.

7. A Car Parked In a Garage Is Covered By Homeowners Insurance: FALSE. Your vehicle will be replaced (minus the auto insurance deductible) if the vehicle has comprehensive coverage (collision coverage won’t cut it). What’s the difference between collision and comprehensive coverage?

8. Your Personal Property is Covered by Car Insurance: FALSE. Your back pack got stolen out of your ride? You’ll need to file a renters insurance or homeowners insurance claim to recover your stolen items. Items targeted for theft are typically subject to special sub-limits on these policies, so be sure to check with your agent to see how much coverage you have.

9. You Will Be Rewarded For Loyalty to an Insurer: FALSE. Have you noticed that every insurance company advertisement says if you switch you can save? They are referring to anyone who has been with the same company for an extended period of time. If that’s you, move on already. Insurance agents regularly hear about people getting “dropped” after one insurance claim, despite being with the same company for a decade (unless they pay extra for accident forgiveness, which may be a rip-off).

10. Full Coverage Means Your Bulletproof: FALSE (in some cases). Having full coverage auto insurance with state minimum liability is far from bulletproof. Full coverage simply means you have liability and physical damage coverage on your policy (versus liability only). With state minimum limits, you are certainly not going to feel “fully covered” if you severely injure someone or total someone’s expensive vehicle. You’ll be on the hook for damages.

Well, there you have it. Ten things agents hear every day that make them cringe.

Do yourself a favor and shop online for insurance quotes to get an idea of how much you should be paying for insurance and then locate a local independent insurance agent to seal the deal.

We’ve noted here before that Americans have a lot of “stuff.”

From electronics to jewelry to clothing, we are a nation of consumers, and so, there’s plenty of need for insurance to protect those items near and dear to our hearts.

That brings us to the top contents insurance claims, those items most reported to be lost, damaged or stolen in 2010, according to Enservio’s Contents Claims Index (CCI) released this week.

Unsurprisingly, electronics (think TVs and computers) led the way with a 15.76 percent share of all personal and business insurance claims.

The category was followed very closely by jewelry (think rings down the drain pipe) at 15.02 percent, while apparel (think Gucci and Versace) was third at 11.91 percent.

Furniture was fourth (someone stole my sofa!) with an 11.21 percent share, and home goods (have you seen my frying pan?) rounded out the top five with a 9.14 percent share.

Top 10 Contents Insurance Claims

1. Electronic – 15.76%
2. Jewelry – 15.02%
3. Apparel – 11.91%
4. Furniture – 11.21%
5. Home Goods – 9.14%
6. Tools – 4.36%
7. Appliances – 3.72%
8. Sporting Goods – 3.54%
9. Music & Movies – 2.66%
10. Bed & Mattress – 2.50%

The company noted that during difficult economic times, such as NOW, claims for higher-end goods tend to rise suspiciously…

For example, commercial data reveals Rolex’s U.S. market is less than one percent, yet four percent of watches claimed are Rolex’s.

As a result, insurance carriers may take measures to ensure more accurate contents claims, so be sure to inventory your home’s contents properly early-on to avoid any issues in the future.

Are you covered?

If you are a homeowner and have a homeowner’s insurance policy in-force, Coverage “C,” also known as “contents” or “personal property” coverage, protects all your precious items.

If you’re a renter, you must have renters insurance to make a covered claim. Your landlord’s policy will not protect you (or your MacBook) here!

Also note that there are two loss valuation methods, including the more expensive “replacement cost” method and actual cash value.

Contents Claims

Some things to consider if you think you may be in a position to file a claim under your contents coverage.

1. Your claim must exceed your deductible in order to see the first dime from your insurance company. If your $500 patio furniture set is destroyed in a windstorm, you can certainly file a claim under your contents coverage. However, if your deductible is $500 or more, don’t bother. You are on the hook for the first $500 and it would be a waste of everyone’s time and effort.

2. If your patio furniture was $750 and your deductible is only $500, you could certainly collect the $250 above your deductible. Just be sure to consider the ramifications of having the claim on your record. Your insurance premium will likely increase for the next couple of years as a result of that claim. So you may end up paying well over $250 in additional premium over subsequent years.

3. Additionally, some insurers are only comfortable insuring individuals who have a maximum number (and type) of claims within a certain time frame. Don’t end up in a situation where you make three small claims in the course of a couple years. Your policy may end up being non-renewed and you might have to find another insurer who is comfortable with multiple claims…an insurer who is comfortable charging you MUCH more premium, since no other insurer will have you.

Remember, insurance is designed to cover you against financial disasters. You may get a couple hundred dollars a few times via small claims, but you’ll end up paying through the nose in the long run.

If you’re currently looking for a workers’ compensation insurance company in Texas, you may be wondering who the top players are.

Fortunately, such information is compiled and delivered by the Independent Insurance Agents of Texas.

Just keep in mind that biggest isn’t always best, and that insurance company ratings vary amongst the largest insurance companies.

Again, these companies aren’t necessarily the top rated, just the most frequently used.

That said, let’s take a look at the list of the top workers’ compensation insurance companies in Texas, based on written insurance premium.

As you can see, Texas Mutual was the top workers’ compensation provider in Texas by a landslide in 2009 (the most recent data available), which isn’t much different than 2008, according to the IIAT Special Report.

Texas Mutual grabbed 29.1% market share with $634.4 million in written premium, followed by Liberty Mutual, who snagged 10.9% market share with $238.1 million in written premium.

Heavy-hitter AIG claimed the third spot with 8.2% market share and $178.5 million in written premium, followed closely by The Travelers, with 7.8% market share and $169.9 million in written premium.

Rounding out the top five was The Hartford, with 7.4% market share and $160.9 million in written premium; just slightly below Travelers.

A number of other notables were in the top 20, including Zurich, CNA, Chubb, Old Republic, and Employers.

Unlike the results for commercial auto insurance providers in Texas, workers’ compensation insurance is more profitable than the U.S. national average.

If you’re in need of workers’ compensation insurance, or simply want to be certain you’re getting a good deal on your current policy, contact a local independent insurance agent for multiple quotes.

Below is a list of the top 10 multi-peril commercial insurance companies in Texas, based on written insurance premium.

Keep in mind these companies aren’t necessarily the top rated, just the most frequently used in the Lone Star State.

As you can see, Travelers was the top commercial insurance provider in Texas in 2009 (most recent year available), according to a report from the Independent Insurance Agents of Texas.

Travelers grabbed 8.9 percent of market share with $180 million in written premium, followed by The Hartford, which raked in 8.7 percent market share on $176.4 million in written premium.

Liberty Mutual snagged the third spot with 7.8 percent market share and $158.1 million in written premium, followed closely by Nationwide, with 6.4 percent market share and $129.6 million in written premium.

Rounding out the top five was heavy-hitter Farmers, with 6 percent market share and $112 million in written premium.

A number of other notables made their way into the top 20, including Zurich, Chubb, CNA, AIG, and Republic.

Similar to homeowners insurance, the loss ratio (amount of money paid out in insurance claims versus earned premium) for commercial insurance has dropped considerably post Hurricane Ike, which ravaged Texas in 2008.

IIAT noted that commercial insurance premiums have dropped, which is likely associated with the downturn in the U.S. economy.

Contact a local independent insurance agent if you are in the market for a new commercial insurance policy or if you want to make sure you are not paying too much for your current coverage.

Below is a list of the top commercial auto insurance companies in Texas, based on written insurance premium.

This doesn’t necessarily mean they are the top rated as far as customer service or even profitability, rather the list shows who brought in how much money and what their loss ratio was for 2009, which is expressed as earned premium divided by the amount of money paid out for insurance claims.

As you can see from the chart below, AIG was the top commercial auto insurance carrier in Texas in 2009 (the most recent data available), according to a report from the Independent Insurance Agents of Texas.

The company grabbed 8.7% market share with $169.6 million in written premium, followed by Progressive, which came in with an 8.1% market share totaling $158.3 million in written premium.

The Travelers grabbed the third spot with 6.6% market share and $129.7 million in written premium, followed closely by Zurich, with 6.5% market share and $127.8 million in written premium.

Coming in at number five and grabbing almost identical market share to Zurich was Liberty Mutual, with 6.5% market share and $127.3 million in written premium.

A couple of the other major players in the top 20 include Nationwide, Old Republic, Hartford, CNA, and Home State.

Texas continues to come in at a much higher overall commercial auto insurance loss ratio than the rest of country according to the IIAT Special Report.

The IIAT pointed out that “the 2009 loss ratio of 59% follows the 61.4% in 2008,” and the “national loss ratio is significantly lower at 53.2%.”

Contact a local independent insurance agent if you are in the market for a commercial auto insurance policy or if you want to be certain you are not overpaying for your current commercial auto insurance policy.

Amica Mutual was rated the top auto insurance provider in the United States in 2010 for the 11th consecutive year, according to the latest customer satisfaction survey from J.D. Power.

The company scored 849 points (compared to 851 in 2009) out of a possible 1,000, and was followed closely by Erie Insurance (849), Auto-Owners Insurance (813), Shelter (807), and State Farm (795), the leading car insurer.

Overall, customer satisfaction dropped year-over-year, thanks in part to an increase in the cost of auto insurance premiums.

An increase in premium was reported by 22% of respondents, up from 19% in 2009, but the lack of advanced notice given to insured by their insurance companies also led to the drop in satisfaction.

The study also found that 60% of policyholders weren’t given advance notice of rate increases.

Don’t expect that to change anytime soon. Insurance companies would prefer that you simply continue paying your premium without even looking at the renewal bill.

Let’s face it; we are all too busy these days and insurers don’t expect us to notice an increase and certainly won’t want to call ahead to notify you. The hope is you don’t go looking for a lower premium.

Top Auto Insurance Companies in 2010 by Customer Satisfaction

Notables like American Family (784) and Geico (793) scored above the industry average of 777, but other big names like Farmers (757), Progressive (775), and Allstate (768) did not.

Commerce was the worst auto insurance company in terms of customer satisfaction, scoring just 726, with its closest competitor being 21st Century, an AIG spinoff (739).

Check out last year’s results.

Direct insurers are also winning out over traditionally more favorable independent agents, as better technology and greater hours of operation (24/7 interactive websites) have given them the edge.

One key behavior that tends to lower dissatisfaction is engaging customers when speaking about rate increases and discussing ways to mitigate any price changes (how to lower your car insurance rate).

Always remember to do your own research and rate comparisons to ensure you’re getting the best deal.

Bigger certainly doesn’t always equal best…

(photo: lucianvenutian)

Last year, MGIC Investment Corp. was the top mortgage insurance company in the United States, with $1.32 billion in direct insurance premium written, per the III.

The Milwaukee-based insurance company claimed a healthy 24.2% of total market share and nearly doubled the volume of the second largest mortgage insurer.

Speaking of, PMI Group Inc., the second largest mortgage insurer, wrote $839 million in premium and grabbed 15.4% of market share.

Now infamous American International Group (AIG) was a close third with $816 million in insurance written, claiming 15% of market share.

Radian Group and Genworth Financial rounded out the top five with totals not far off that of PMI Group and AIG.

Then things dropped off considerably, with the tenth mortgage insurer on the list writing a piddly $3,000 in business.

Mortgage insurance, also known as private mortgage insurance or PMI, is required on all residential mortgages with a loan-to-value above 80%.

In other words, if you put down less than 20% or have less than 20% equity in your home when you refinance, your bank or lender will require you to take out mortgage insurance.

Mortgage insurance protects the lender in cases where homeowners default – it is does not protect the homeowner!

Note: The seventh insurer is actually Triad Guaranty, not Trian Guaranty, as the chart displays.

Read more: Is homeowners insurance included in the mortgage?