October 5, 2009

Effectiveness Of Auto Insurance Company Loyalty Questioned

Just because you’ve worked with the same insurance broker for a long time, doesn’t mean they’re automatically going to give you the best auto insurance rates. They may be so confident of your business that they don’t think they have to try as hard to meet your needs. If you’ve been depending on the same agent for many years, it’s possible you aren’t aware that you could easily be getting a lower auto insurance rate based on changed circumstances or coverage needs. For you, now may be the ideal time for you to start shopping for auto insurance. You may be surprised at how much money you can save by either switching to a company that will give you a better auto insurance rate or by negotiating with your current insurer.

Even if you really like your auto insurance agent, a quick price comparison with other companies can be beneficial to you. By doing so, you will have a good idea of what you should be paying for the amount of auto coverage you have. If you find that you are overpaying, pick up the phone and let your agent know that you’ve been checking out policies from other companies. Many times, your loyalty will give you a little leverage, and the agent will take this as a jumping off point to negotiate a lower rate with you. In hard economic times, they will likely do whatever they can to keep your business.

Be careful when researching rates. You may be able to find comparable auto insurance coverage for a lower price, but you may also be enticed by the promise of a less expensive policy that includes less coverage than you need. So, before researching, ask yourself what level of coverage will work best for you. You shouldn’t grab a policy based on price alone.

When you weigh your options for insurance coverage, keep in mind that your own behavior is also an important part of the equation. If you’ve always kept your policy current and paid your bills on time, then your broker is going to be especially motivated to try to keep you as a client. If your payments are chronically late and you’ve consistently demonstrated irresponsible driving behavior, they may be less likely to work hard to find a great deal in order to retain you as a client. These variables will also work to your advantage when you look for rates from other companies.

Don’t assume you auto insurance company is giving you the best rate just because you’ve been a loyal customer. As a policyholder, you are responsible for making sure you are getting the best rate for your auto insurance coverage.