The internet can be a wild and wonderful place. Reddit, especially, is often a great resource for niche interests or new skills. I (somewhat shamefully) peruse Reddit for all kinds of things. It’s helped me decide which litter to buy for my long-haired cat, find the best skincare products for my sensitive skin and uncover phone apps that help me focus. Personal finance subreddits (think of a subreddit as a topic-specific forum) are rife with advice on credit cards, investing and insurance. Some of the insurance advice I’ve come across on Reddit is pretty good, but some of it raised my eyebrows. Some of it is even straight-up illegal.
Insurance can be complicated. As a licensed agent, I understand that without a proper knowledge base, it can feel like you’re flying blind when trying to buy a policy. Rates for home and auto insurance have been trending up, so it’s also understandable that frustrated policyholders would poke around online for tips on how to score a better deal. To be clear, the only person you should really take ‘advice’ from about your home and auto insurance is your insurance company or a licensed agent. But since I know most people are prone to do a ‘quick Google search’ before all else these days, I went ahead and scoured the Reddit-verse for what I felt are some of the best — and worst — insurance tips from the ‘front page of the internet.’ Hopefully my research gives you a little understanding. And a starting point to help you realize you should just call your actual insurance agent.
Worst insurance advice on Reddit
Let’s start with the bad. Keep in mind that some of the ‘advice’ below is a little tongue-in-cheek, but still ill-advised. If nothing else, take it as a reminder that making important financial decisions based on the angry internet post of a stranger may not be the wisest course of action.
Insurance is a scam
“Insurance is the ultimate scam and im sure this is a popular opinion….And I understand insurance companies need to make money, however such a small percent of people actually end up using their insurance, to the point where the companies do not even need people to actually pay more, but just to penalize them and make them pay for their own mistakes themselves and still pay for insurance.” — Reddit User
“This probably isn’t super unpopular but let me explain why I think this. Even if you are never in a single car accident your entire life, you paid money every month for not return. If your house is never on fire, broken into, etc. You get nothing back.” — Reddit User
Why this is not helpful: I understand the frustration. Insurance is an expense that you don’t technically ‘use’ when you pay for it (or at least, you hope you don’t have to use it). But, just because you don’t always get a tangible ‘return’ like you would with a credit card or 401(k) doesn’t mean it’s an elaborate method for companies to dupe their policyholders.
Insurance is like a pool where everyone pays a little (your premium) so that those who have contributed can get a lot if they need it when something specific happens (like funds to rebuild your home after a fire or to repair your car after an accident). An insurance contract transfers the bulk of the financial risk of rebuilding or repairing your home or car away from you and onto an insurance company. Your insurance policy also offers you liability insurance, which can help if you are at fault for a car accident or if your dog bites someone in your home.
So while it’s true you may not (even hopefully not) get that money back in the form of a claims payout, it’s equally true that if you find yourself needing extensive home repairs after a storm or a new engine after a flood, insurance could potentially save you from financial ruin.
I am currently in the middle of a homeowners insurance claim for roof damage that occurred during a hail storm. My insurance company approved full roof replacement, which included the removal and re-installation of solar panels, new structural and coding upgrades and other additional costs totaling over $30K. The solar panels alone added $11K to the overall project. As a single mom, it would be nearly impossible for me to come up with that cash on my own and insurance enabled me to get a new roof with very little money out of pocket.
“Just get ____ [insurance company]”
“Wawanesa if you’re a good driver.” — Reddit User
“I’m only going to say this once…. Costco Costco Costco.” — Reddit User
Why this is not helpful: These may not seem like bad tips at first glance, but insurance is very personalized. While these companies may offer great policies at affordable prices to some, neither home nor auto insurance is a one-size-fits-all kind of product. Each insurance company has its own unique underwriting method, and rates will vary from provider to provider.
One insurance company may offer a cheaper rate to a driver with a speeding ticket, while another could calculate that ticket as a bigger risk and jack up their rate. Or, one home insurance provider may offer a fairly steep discount for new home purchases, while a different company may not offer much (or any) discount for it.
This is exactly why most insurance experts recommend comparing quotes across multiple providers before committing to a policy. Request the same coverage types and limits (this applies to home AND auto) so you can compare apples to apples. And do a little research on the companies, too. Maybe customer service is the most important to you, or you’re more focused on price. Decide what matters to you and find out what your potential provider is known for, then compare.
Fudge your personal details
“When you’re setting up your insurance policy, you’re asked ‘how many miles will you use driving this vehicle in a year?’ or some variation – the lower the number, the cheaper the policy. Most cases, insurance companies will not track your annual mileage, and you’re also able to switch policies as often as you’d like. Easy win.” — Reddit User
“Say you’re married. You don’t have to prove it and it’s a discount on insurance.” — Reddit User
“re-register your car in a much cheaper place, probably rural, or a different state.” — Reddit User
Why this is not helpful: This type of advice is tough to read. It’s never a good idea to lie to your insurance company to get a lower rate (or for any reason). In some states, this could even qualify as insurance fraud. You’ll likely also end up with a canceled policy and denied insurance claim.
In California (where I live), insurance fraud can be punishable with up to five years in prison and can be considered a felony. The California Department of Insurance states that insurance fraud can also carry a fine of up to $50,000 — a lot more than you could potentially save by lying to your insurance company. Exact punishments will depend on your state, but the principle is the same: Lying to your insurance company is a crime, and the consequences are real.
Plus, it’s usually not the type of lie you can get away with. Insurance companies are pretty savvy about verifying information that pertains to risk. Your insurance company may request an odometer reading to confirm your vehicle’s annual mileage. Or, if you use a telematics device, it’s possible for your insurer to see your mileage that way.
Full coverage car insurance is the same as minimum coverage
“Don’t ask for ‘full coverage,’ it doesn’t mean anything.” — Reddit User
Why this is not helpful: This is objectively false. A full coverage car insurance policy means much more robust financial coverage. While the definition may vary slightly between providers, full coverage typically includes comprehensive and collision coverage on top of your state’s minimum requirements. Many drivers ask for “full coverage” when they want financial protection for their own vehicle — not just the damage they cause if they are at fault for an accident.
Collision coverage, generally speaking, covers the costs of repairing your own vehicle if you’re found at fault for an accident. Comprehensive coverage can help with a slew of other potential losses, like vehicle theft and weather damage.
It is also true that full coverage means a price hike compared to minimum coverage. Average rate data shows that, as of August 2024, full coverage car insurance costs $2,329 per year for full coverage, while minimum coverage averages $633. But, with full coverage comes broader financial protection. Like with most things insurance, talk to your agent to see how much coverage is right for you. But understanding some basic insurance concepts could help make that conversation more productive.
Change your gender
“Legally change your gender” — Reddit User
Why this is not helpful: This one had me scratching my head. Let me back up, though. It’s true that there is some difference between average rates for males versus average rates for females. But why? A study from the Insurance Institute for Highway Safety (IIHS) shows that men are statistically more likely to engage in risky driving behavior like not wearing a seat belt, driving under the influence of alcohol and speeding. So, to account for the added risk of insuring a male driver, many car insurance companies charge men higher rates than women.
Now here’s the ‘but.’ Since lots of factors play into your rate, all of the above may not make much difference anyway. According to average rate data from August 2024, a 40-year-old man with a clean driving record only paid about 4 percent more than his female counterpart for a full coverage policy. While it’s true that younger drivers may see more of a disparity in rates between genders, it’s still a rather lengthy step to take if the sole purpose is your car insurance.
Best insurance advice on Reddit
Now for the ‘good’ advice. I can’t stress enough that the only person you should truly be taking insurance advice from is your actual insurance agent (and if you don’t have one, consider getting one!). But I did find some sound tips that any insurance expert is likely to get behind.
Much of this ‘better’ advice loosely follows the principle that the simplest solution is often the best one. Like I said earlier, insurance is already a complex thing. Creating obstacles to get a cheaper rate often just makes it harder and more frustrating. But there are some simple things you can do that might make navigating your car or home insurance a bit easier.
Talk to your insurance agent
“Call up your agent/broker and ask them to explain the policies to you. no offense intended, but it’s clear the data is overwhelming to you. that’s fine! millions of people don’t understand their policy and coverages but a 15 minute call will save them untold amounts of stress trying to learn basic insurance concepts while handling a massive house fire” — Reddit User
Why this is helpful: A thousand times, yes. This is probably the number one piece of insurance advice I could offer someone (and already have several times in this article). A licensed insurance agent doesn’t know where your insurance knowledge begins and ends. They are not only well-versed on all the ins and outs of home and auto insurance, but they are also familiar with the insurance company or companies they work with and its unique policies. They, not Reddit or Google (or even me), are the ones who can answer your unique-to-you insurance questions with certainty.
If you have questions about your policy, aren’t sure how much coverage you need or don’t know where to begin, setting up time to chat with a licensed agent in person or over the phone could make a world of difference — and save you some financial headaches down the line. Talk to them!
Read your policy
“Mine is easy, read your policy. You pay to much money over the course of your life to not even know what you’re covered for on a bare minimum scale.” — Reddit User
Why this is helpful: As an addendum to my favorite piece of advice (talk to your insurance agent), I couldn’t agree more with this one. I’ve come across dozens of Reddit comments from angry policyholders about how their claim was denied. But, a lot of the time, it turns out that they weren’t covered for the damage in the first place. For instance, without flood insurance, your home isn’t financially protected from damage caused by a flood. Or, with just minimum coverage car insurance, you won’t be covered for your own vehicle repairs if you were at fault for an accident. Looking at the finer print of your policy can help you understand how it works to protect you and may even help you identify potential coverage gaps.
If you sit down to read your home or auto policy and find yourself intimidated, circle back to that most golden piece of advice: talk to your insurance agent. They’ll help you read the policy. You can even ask them questions about it and run through scenarios with them.
Use AI
“This happened with my homeowners insurance. Went up 100% from last year. I just shopped it, had them all send me quotes, loaded them up in Chatgpt to analyze them and tell me which was the best price vs coverage. Saved 2k per year” — Reddit User
Why this is helpful: This one intrigued me. I have to admit that this isn’t something I’ve ever thought of, but I think it could be a great way to review and compare quotes. The only thing I would add is to follow up with a licensed insurance agent (that golden rule) to make sure you’re understanding your quotes correctly. I can’t say I’d recommend using AI tools as the sole arbiter of anything, but leaning on the advanced technology available to most of us today could be a great way to get a better handle on your insurance quotes before you speak with an agent.
One caveat to this: don’t rely solely on AI any more than you’d rely solely on Reddit. Both are simply tools where you might (or might not) find some basic information or opinions. Talk to a licensed agent and make sure you’ve got the right coverage at the right price — and that you understand it!
Set up automatic payments
“Set your payment to auto pay and make sure that account has money.” — Reddit User
Why this is helpful: I like this one because it’s simple. Insurance lapses have the potential to increase your rate, so paying your insurance bill on time is critical. In some cases, an insurance lapse could even place you in a higher risk category (which, whether it’s home or auto insurance, could raise your rates down the road).
Opting into automatic payments is super simple with most carriers and might be a great way to get peace of mind that you won’t miss a payment. Plus, some insurers even offer small discounts for auto-pay (usually around 5 percent). Do you know who you can ask about that? Your insurance agent. If you do go the auto-pay route and link your insurance payment to a credit card, make sure that the card remains active throughout your policy.
Check your dwelling limit regularly
“The most important thing is having an adequate dwelling coverage to rebuild your home”. — Reddit User
Why this is helpful: While this only applies to home insurance, I can’t stress this enough. Your dwelling insurance limit, which pays to repair or rebuild your home’s structure, is one of the most important parts of your home insurance policy. In most cases, your other structures, personal property and additional living expenses coverages are calculated as a percentage of your dwelling limit. So, if your dwelling limit is too low, it could domino into other parts of your policy.
So why would your dwelling limit be too low? One of the most common reasons is inflation. When the cost of construction materials and labor is high, it increases the cost of rebuilding your home. For instance, instead of $250,000, maybe it now costs $300,000 to rebuild your home from the ground up.
To avoid being underinsured, maybe set aside time to speak with a (you guessed it) licensed agent about 30 to 60 days before your policy renews to make sure you’re completely covered. You might also want to talk to your agent about whether an inflation guard or extended dwelling endorsement is available. An extended dwelling endorsement can add an additional 25 to 50 percent to your total dwelling limit, in case your original dwelling limit isn’t high enough to cover the cost of your claim. An inflation guard endorsement, on the other hand, automatically adjusts your coverage limits to keep pace with inflation.
Shop often
“You should be pulling quotes every 6 months, even if you have a bundled offer for other insurance types. There’s no bonus for loyalty these days, and you may be leaving hundreds on the table. Especially relevant if your insurer gives you a hefty raise at renewal.” — Reddit User
Why this is helpful: While this advice is pretty solid, there is one important hitch. Many insurance companies do offer discounts for loyalty, like if you’ve had your policy with the same company for a certain number of years. That said, if your rates keep climbing with that insurer, you may not want to wait around for a discount. Making a habit of shopping around before your policy renews might help you lock in lower rates. Shopping doesn’t necessarily mean you need to switch companies, but just collecting quotes can help you better gauge what’s out there price-wise.
I think a lot of people do tend to shop around for their auto policies, but this tip may be even more helpful for homeowners, whose home insurance bill may be wrapped up in their mortgage payments. Take a look at your mortgage statement and see what you are paying for home insurance, then shop around and see if there is something better for you out there. Just don’t forget to tell your mortgage company if you switch providers.
The bottom line
Reddit can be a great place to see what others think about their car and home insurance, but don’t take everything at face value. Advice that suggests you lie to your insurance company, that insurance is “out to get you” or something of that ilk probably isn’t sound guidance. Take what you see on Reddit with a grain of salt, and if you have questions about your insurance policy, the best thing to do is check with a licensed insurance agent — not take advice from someone you’ve never met.
