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. Just because another company is promising a better rate doesn't mean you should rush to cancel your insurance and switch. There are a few things to consider first
Are You Losing Your Longevity "Credits"
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. Sometimes this is referred to as safe driver discount or a longevity discount. The company rewards you for your loyalty by waiving the first accident you have.
This discount can be extremely significant should you need to use it. Car accidents can raise your rate by 40% for 3 years so the potential savings could be several thousands of dollars over that period. If you have an accident with that new company how much are you going to regret that decision when your rates go up by 40%?
Your Introductory Rate May Not Last
Another thing to be mindful of is to make sure the company you are switching to is not offering you just a teaser rate for the first 6 months to get your business and then bump you up 6 months later once they've got you on their books. Every month we see companies offering a low ball rate to get customers to switch and then once they've got you increase your rates at the renewal.
This is especially common when people buy insurance without an agent because the insurance companies conduct further underwriting on the customers after they've written the insurance so that low rate they gave you to get in the door can be taken away after they conduct further investigation into your driving history, MVR record, or other elements that factor into your rates.
Are You Missing the Hidden Fees?
Watch out for hidden fees. This is one that can surprise you. Some companies charge you for making monthly payments - usually $3-$5 a month. Over the course of a year that comes out to $36-$60. That one fee can take a big bite out of your potential savings so make sure you factor that into the rates you are comparing. Make sure you are really saving money when you switch.
You'd be surprised how many of our clients have come back to our agency after switching insurance because they found that the grass wasn't quite greener on the other side. And if you're interested in switching insurance to our agency, we'll take the time to make sure you're not making a poor decision. For more information about how to switch Auto Insurance company contact our agency at (386) 218-4951 or click here to get a quote today.