For several years I have had discount auto insurance through one of the
most recognized auto insurance companies advertised on television. It
wasn’t the caveman or the lizard that enticed me into going with that
insurance provider. No, it was actually the fact that I had been with
another insurance company who kept raising my rates a little bit each
year.
Finally I got fed up and decided to search around for cheaper auto
insurance. Surprise! Because I did not have perfect credit at the time,
this discount auto insurance company was the only one that didn’t penalize
me with higher rates.
Okay, so I got cheap auto insurance. The problem is that after being
with this auto insurance company for over three years, in the last few
months I’ve begun to think that I’m being charged too much. After all,
I’m not in a risky age category, I’ve never had an accident, and my car
is three years old and not one of those most likely to be stolen. So,
why is my insurance so high?
This time I decided to do my research about shopping for auto
insurance, by asking for some advice first. Here’s what I learned:
1. Several of the cheaper insurance companies are great when you have
your first car and just want bare-bones coverage, but to get full
coverage they tend to charge more than the premium auto insurance providers.
2. Often the actual coverage available thru the discount auto insurance
companies is actually discount coverage...not as good as that offered
by full-service insurance companies. Unfortunately, you often only
discover this after an accident.
3. Having more than one type of insurance policy with the same company,
can mean an automatic discount. Called “bundling”, combining auto
insurance with homeowners or renter’s insurance will often result in lower
premium payments.
4. Since insurance companies tend to raise the rates during subsequent
policy renewals, keep an eye on your rates. Don’t hesitate to shop
around for another insurance provider, especially if the savings will be at
least $100 per year.
5. There is an advantage to having a long-term relationship with a
local insurance agent when it comes to filing a claim. Continually changing
insurance companies does not build a relationship.
I listened to all of the advice and since I was buying a new home,
called my current insurance provider to see if I could save money by having
both auto and homeowner’s coverage thru them. They gave me a quote for
the homeowner’s and told me that there would not be any discount for
having more than one type of policy with them.
Disappointed, but determined to find a lower rate, I called the
insurance company I had been with before changing to the discount auto
insurance. The quote I received for the homeowner’s coverage was considerably
lower than I’d received from my current provider. Plus the car
insurance premium will be much lower than what I’m currently being paying each
month.
Needless to say, I’m switching insurance companies the minute the sale
closes on the house. Another plus…the new insurance provider has a
local office with an agent that already knows me personally; a definite
win-win.
Discount auto insurance may not always provide the best rates or the
best coverage. If you are not happy with your current provider go ahead
and look for the type of coverage and premium payment that suits you.
Remember: It’s not a crime to shop around…in fact, it’s your right.
