We've all been bombarded with ads, emails, commercials, and billboards saying how much we can save on our auto insurance by switching to another company. It's a competitive industry. But, there is no reason to jump the gun and switch insurance the moment you hear one company is offering a cheaper deal. There are a few things you need to make sure of before you do.
Here are some things to consider before you make the switch.
If you've been with one company for many years and they offer a credit that waives the first accident you have, you may want to stay or see if the other company can match it. Some refer to this discount as longevity discount, good driver discount, or accident forgiveness. The company rewards you for your loyalty by waiving the first accident you have.
This discount can be pretty significant. Since many accidents can cause an increase in premium of 40%, you can see how the savings would be tangible. Unfortunately, the credit won't follow you when you switch companies. Wouldn't it be awful to get in an accident after switching companies and having to pay a 40% higher premium?
You also need to make sure the rate you are considering is going to be constant, and not be low only for the first 6 months or so. Since auto insurance is a profitable industry, companies may offer you a low ball rate to get you to switch and then once they've got you increase your rates at the renewal. If the rate you are being offered seems low enough to be a miracle, you might want to check a little deeper. Good sites for research are insurance forums or "XYZ insurance + Reviews" on Google.
Watch out for hidden fees. They can pop up when you least expect them. Some will even charge you to process your payment every month. Over the course of a year that comes out to $36-$60. These types of fees can potentially reduce your savings, so make sure you factor them in. Your goal is to save money.
You should also take a look at the company's business hours and at their online site. Make sure they are available when you need them. If they are only open from 8-5 and you work 8-5, when are you going to be able to call them if you have a question or need to make a claim? If you normally conduct business online, you need to make sure their site is accessible 24 hours a day.
And, as a last thing, do shop around before you commit. These tips will help you get the best possible deal.
Here are some things to consider before you make the switch.
If you've been with one company for many years and they offer a credit that waives the first accident you have, you may want to stay or see if the other company can match it. Some refer to this discount as longevity discount, good driver discount, or accident forgiveness. The company rewards you for your loyalty by waiving the first accident you have.
This discount can be pretty significant. Since many accidents can cause an increase in premium of 40%, you can see how the savings would be tangible. Unfortunately, the credit won't follow you when you switch companies. Wouldn't it be awful to get in an accident after switching companies and having to pay a 40% higher premium?
You also need to make sure the rate you are considering is going to be constant, and not be low only for the first 6 months or so. Since auto insurance is a profitable industry, companies may offer you a low ball rate to get you to switch and then once they've got you increase your rates at the renewal. If the rate you are being offered seems low enough to be a miracle, you might want to check a little deeper. Good sites for research are insurance forums or "XYZ insurance + Reviews" on Google.
Watch out for hidden fees. They can pop up when you least expect them. Some will even charge you to process your payment every month. Over the course of a year that comes out to $36-$60. These types of fees can potentially reduce your savings, so make sure you factor them in. Your goal is to save money.
You should also take a look at the company's business hours and at their online site. Make sure they are available when you need them. If they are only open from 8-5 and you work 8-5, when are you going to be able to call them if you have a question or need to make a claim? If you normally conduct business online, you need to make sure their site is accessible 24 hours a day.
And, as a last thing, do shop around before you commit. These tips will help you get the best possible deal.
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