Why Even Loyal Insurance Customers Need to Get Car Insurance
In many business situations, companies reward
customers who have shown loyalty. However, auto insurance companies are
sometimes limited in their ability to provide lower rates for long-time customers.
When your life situation changes, insurance rates will change as well. The only
way to make sure that you are paying the most affordable rate for your
demographic and location is to regularly look into auto insurance quotes from
several different companies.
Length of Time with One Company Means Little
Many people carry auto insurance with the same
company for decades because it is easier than finding a new agent every year.
If you do not experience very many changes, keeping the same insurance coverage
for several years can be effective.
Unfortunately, the changes that make a big
difference in your insurance rates are not always changes that you have much
control over. Simply getting older can affect your rates substantially. As your
children age, you rates will change as well. Moving to a new home can sometimes
cause insurance rates to double - or if you're lucky, it can reduce them by
half.
The trouble with keeping the same insurance
company and not checking your options is that you never know the savings you
are missing until you check. Not every insurance company charges the same
increases or decreases based on demographics.
You may be a customer of a company that offers
excellent rates for someone who lives in your hometown, but that same company
may charge exorbitant rates for someone who lives two cities away from you.
While there are often discounts for staying with a company for a long time, you
could be helping yourself to a deeper discount by switching. The biggest
discounts can be found only by checking the rates from different companies as
your age and situations change.
Location is More Important to Your Rates
The cost of insurance in different cities can
vary greatly. Some cities experience large insurance shifts from one section of
the city to another. The reason that insurance costs change based on geography
is because driving hazards change from location to location.
Someone who lives in an area that has low
traffic volume or a low crime rate will be offered a lower insurance rate.
Moving to a new part of town may put you in a riskier environment that
influences your vehicle's safety. Insurance companies will adjust your rates
depending on the amount of risk that they perceive based on the research they
have done in your new location.
Not all insurance companies raise their rates
by the same amount based on geography. Unfortunately, your long-term
relationship with an insurance company will not prompt your insurance agent to
let you know about the different rates that you can find when you compare
companies. It is in the agent's best interest to keep you with the company that
pays them the highest commission.
You need to make sure you do your own research
into several car insurance companies before your policy renews or if you expect
to move. You may be surprised to discover that some companies base their rates
more strongly on other factors than geography, so they can offer you lower
rates than other companies.
Driving Record Can Make a Difference
Most insurance companies offer discounts for
drivers who have excellent records. Avoiding accidents and traffic tickets is a
good way to keep your insurance rates lower. In fact, there are insurance
companies that will give you a percentage off your insurance premium if you
have done business with them for a specific number of years and you have
maintained your excellent driving record.
However, these discounts cannot always offset
the cost increases when you have a different shift in your demographics. Moving
to a new location, changing cars, or adding other drivers to your policy can
cause your rates to increase so much that the good driver discount is no longer
an incentive to stay with your current policy.
The truth is, you can find a good driver
discount from almost every car insurance company. If you spend some time
researching auto insurance quotes, you may find that there are companies that
offer the same type of coverage at a lower rate, which includes a good driver
discount. A discount on a rate that is lower to begin with can be much more
attractive than a discount on a rate that is too high to begin with.
Ages of Drivers in the Home
As your children grow older, they will affect
how much you pay for car insurance. It is impossible to avoid the extra expense
of insuring multiple drivers. Teenagers and young adults can be some of the
most expensive drivers to insure.
As your children reach the driving age, it is
important to look into your insurance options with your current company and
compare them to the options you find from other companies. The time you invest
in researching several insurance companies will pay for itself if you find the
right company at the right rate.
Insurance Quotes are Your Best Financial Tool
When something unusual happens, like changing
residences, it is especially important to look into all of your options. Since
insurance companies show no real loyalty toward you for being a long-time
customer, there is no need for you to stay with a single company every year.
You should feel free to look into rates from several different companies until
you find the insurance that fits your budget and your coverage needs the most.
The best way to make sure you are not paying
too much for your car insurance is to
check quotes every year. A quick look into quotes from three or more insurance
companies will give you a solid understanding of how much you should expect to
pay for insurance when you move to a new location, buy a new car, or experience
any other life-changing event.
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