What to Consider Before Switching Auto Insurance Providers

If you watch television or cruise the web, you probably roll your eyes whenever you see an auto insurance advertisement. There are so many of them out there, and all of them are asking you switch over with a compelling "spin" on their service.

Given that there are so many car and truck insurance companies out there, you may very well be tempted to take them up on their offer.

Before You Switch Auto Insurance Agents

Before you make the switch, consider a few factors that may warrant holding off. In doing so you may be able to save time and money, and avoid hassle by delaying - or opting out altogether on - switching to a different auto insurance agency.

The factors you should consider are many. They include:

Eligible Discounts: If you believe your current auto insurance rates are not competitive, then make an appointment with your car or truck insurance agent to review your policy. Depending on what they offer, you may be eligible for auto insurance discounts based on a number of factors, such as:

- Driver History "Event Lapse": If you were involved in an accident or had traffic citations upwards of a few years ago, these incidents may soon "drop off" your driving history, thus making you eligible for a discount based on your more recent good driving history.

- Security Features: By having safety features such on your car or truck such as an anti-lock braking system (ABS), electronic stability control (ESC), a theft prevention device or system, a car location device (following theft), or even a simple car alarm may make you eligible for a further auto insurance discount.

- Garaging Location: The location where you park your car when not in use factors in on your auto insurance rate also. If you live in a location associated with frequent insurance claims or theft, this may adversely affect your premiums. By moving to a better-ranked location, you may be able to secure lower rates - without switching to a new car insurance carrier.

Car Insurance Policy "Bundling": If you purchase several forms of insurance from several companies, consider "bundling" all your insurance policies under one insurance agent. By doing this, you leverage greater buying power and you may be able to garner a lower rate for your auto insurance policy. If you are a business owner and operate a vehicle as an active part of your business, you may wish to consider adding Commercial Umbrella Insurance as a supplement to your current auto insurance policy.

"Loyal Customer" Rates: If you've retained the same car insurance carrier for many years, let them know that you need to reduce your premiums. Ask them whether customer loyalty means anything to them. While some agents will provide you with an outright "no" an as answer, some will petition with the main office on your behalf to help you secure a reduction in premiums. If you've taken advantage of policy "bundling" mentioned above, use this as a further argument in your case for customer loyalty.

Your Credit Rating: Does your credit score affect your auto insurance rates? In simple terms, the answer is "yes". As with any other lender or service provider, car and truck insurance agencies rely your credit score to determine what level of risk you entail if they offer you auto insurance coverage.

See Your Insurance Agent

If you believe your current car or truck insurance rates are not competitive, then make an appointment with your insurance agent to review your policy against the above items, and be sure to ask them if you are eligible for further discounts on other exclusive offerings they may have.

Source:

You Can Save Big With Our Auto Insurance Discounts, Allstate