Frequently Asked Questions

Insurance policy premiums are determined by the carrier and submitted to the state's department of insurance for review. Generally speaking, policy premiums are set based on a combination of risk factors, coverage levels, and company-specific pricing models. Here’s a breakdown of key components:

1. Risk Profile: Insurers assess the likelihood of a claim. This includes:

2. Age, credit score, and claim history (for auto/home/life)

3. Property location and condition (for home)

4. Driving record and vehicle type (for auto)

5. Health and lifestyle (for life/health)

6. Coverage & Limits: Higher coverage amounts, lower deductibles, and add-ons (like roadside assistance or replacement cost) increase premiums.

7. Underwriting Models: Each company uses proprietary data, actuarial models, and statistical analysis to predict losses and set rates.

8. Regulations & Market Conditions: State laws, inflation, natural disaster frequency, and reinsurance costs also impact pricing.

An insurance agent can affect premiums in the following ways:

1. Coverage Choices: Recommending higher or lower limits, deductibles, or optional coverages (like roadside or rental) impacts cost.

2. Discount Application: Ensuring all eligible discounts are applied (e.g., bundling, claims-free, good student).

3. Carrier Selection: Matching clients with the right insurance company—some carriers have better rates for certain profiles.

4. Risk Assessment: Accurately reporting and explaining risks (like roof age, driving history, home updates) can avoid rating errors.

5. Policy Structuring: Structuring policies efficiently (e.g., bundling home and auto) often reduces total premiums.

6. Client Education: Helping clients understand how their behavior (claims, credit, lapses in coverage) affects future rates.

While agents don’t set base rates (that’s up to the carrier and state regulations), they can significantly influence the final premium through guidance and expertise.

Please don't. We completely understand how frustrating the increasing cost of insurance is in the state of Texas, but yelling at your agent is never the appropriate course of action. Jason Ridley Agency, LLC employees are also consumers just like you, so we too, feel the sting of current insurance premiums and empathize with you

Please remember no one at an insurance agency is responsible for setting your premiums - that's done by the carrier and your state's department of insurance. And no one at our agency would ever purposefully do anything to upset you. So when you get that renewal, and if there's a significant increase, take a few deep breaths before you reach out to us - because we really are here to help

• Keep in mind, the general ways an agency can help affect your premium costs are:

  • Policy Customization – Although we don't typically recommend it, lowering coverage limits and raising deductibles may help lower your premiums.

  • Carrier Selection – Comparing rates from multiple companies (if independent).

  • Discount Optimization – Applying eligible discounts (bundling home/auto, safe driver, good student - with proof, home security, etc.).

  • Risk Assessment – Advising on risk improvements (e.g., roof upgrades, security systems).

  • Accurate Info Submission – Ensuring details like home value, driver info, and business operations are correct to avoid over- or under-rating.

Note: Depending on the size of your policy's renewal increase, when you're within 30 days of renewing, as a courtesy, we will automatically review your coverages and shop your policy with our list of available carriers to determine if there's a better opportunity for you

The difference is in who they represent:

• Independent Agent: Works with multiple insurance carriers, offering a variety of coverage options and price comparisons. They work for you, not one company.

• Captive Agent: Works for only one insurance company (like State Farm or Allstate) and can only offer that company’s products.

Bottom line: Independent agents offer more flexibility and choices, while captive agents offer products from a single source.

Note: Jason Ridley Agency, LLC is an independent agent.

Here are key advantages of choosing an independent insurance agent over shopping online:

1. Expert Guidance – Agents explain coverages clearly and help avoid costly gaps.

2. Customized Policies – Online platforms use general algorithms; agents tailor policies to your specific needs.

3. Carrier Comparison – Agents quote multiple top carriers, while online sites may be limited or biased.

4. Claims Support – When applicable, an agent can advocate on your behalf; online platforms usually don’t.

5. Relationship & Trust – You get ongoing support from a real person who knows you—not just a website.

6. No Extra Cost – You pay the same or less than online quotes, with added service and peace of mind.

Here are common ways to lower your insurance premiums:

1. Bundle policies – Combine auto, home, renters, etc., for a discount.

2. Increase your deductible – Higher deductibles usually mean lower premiums.

3. Maintain good credit – Many insurers use credit to help determine rates.

4. Drive safely – Avoid tickets and accidents to keep your record clean.

5. Take advantage of discounts – Good student, safe driver, multi-car, and more.

6. Review coverage regularly – Drop unnecessary coverages on older vehicles.

7. Install safety devices – Alarms, anti-theft, or driver tracking tools may help.

8. Ask Your Agent to Shop around at Renewal Time – Different carriers offer different rates for similar coverage - depending on the amount of your increase, Jason Ridley Agency will automatically shop your renewal to determine the best price for your coverage

9. Limit claims – Frequent claims can lead to rate increases.

10. Take a defensive driving course – Some insurers reward completion with a discount.

Always talk to your agent—they can uncover hidden savings based on your situation.

A deductible is the amount you agree to pay out of pocket before your insurance kicks in to cover a claim.

How It works:

• If you have a $1,000 deductible and file a claim for $5,000, you pay the first $1,000, and the insurer pays the remaining $4,000.

• Deductibles apply per claim (not annually) on most property and auto policies.

• Higher deductibles = lower premiums, but more cost to you if you file a claim.

It's your share of the risk, helping prevent small or frequent claims.

A bundle in insurance means purchasing multiple types of policies—like home and auto—from the same insurer. This often qualifies you for a discount on both policies, simplifies billing, and can improve claim coordination. Bundling can save money and streamline coverage.