Look Before Leaping: Car Insurance Switching

Someone somewhere is thinking about switching car insurance carriers. It happens on a daily basis. With so many commercials, emails, flyers and phone calls from competitors, many are surprised when they aren’t asked to switch their car insurance company. While switching is sometimes for the best, it’s not always something that is as good as it sounds. Before anyone switches their car insurance company, they should look and ask questions.

There are times that switching car insurance companies can be a wonderful thing. Everyone wants to save hundreds of dollars each year. It also makes a lot of sense to work with a company that benefits everyone in a household. Switching for some people just makes sense but it shouldn’t be done without a few questions to the agent.

The Hard Part about Switching

When a person leaves the insurance company they have been with for years, there may be some downsides. All the years of customer loyalty discounts can be lost and the great relationship with a specific agent can be traded for a cold stranger. Those that are thinking of switching should keep those things in mind.

Are They Matching?

What discounts will the new insurance company be matching? That should be one of the first questions people as before they leap over to that trendy new insurance company. People that have been with an insurance company for years may now have discounts for customer loyalty, good driving, no accidents and many other things. There are some companies that have accident forgiveness as a reward for being a loyal customer.

The new insurance company may not offer any of those discounts. If they do, are the discounts comparable to what they are with the existing insurance company? If the discounts don’t save a lot of money and the premiums are still expensive, switching may not be the best option.

Is this a Teaser Rate?

When the discounts are significant and the premium looks good, drivers should ask if this rate is a temporary one. There are times that companies will use an introductory rate to lure new customers and after a specific amount of time has passed, the rates increase and discounts disappear. It’s a cruel trick but it’s one that happens repeatedly.

Instead of allowing this to happen, before switching, people should ask if the rates and discounts they are getting an introductory offer. If it is an introductory offer it doesn’t hurt to ask for it to be a permanent thing in order for the change to happen. Some companies will allow it and others won’t. But it’s important to try than say nothing and be surprised after the trial prices end.

Switching insurance sounds so easy if commercials and ads are anything to go by. In reality, it’s not always that easy. Savvy insurance shoppers will question the discounts they are being offered and do the math. If the savings aren’t as great as they sounded, don’t switch. If they look to be too good to be true, question it. If the savings are significant and the service is good, enjoy a new insurance provider and continue to drive safely.

Sep. 1 14'

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