Heed These Warnings Before You Switch to Another Auto Insurance Company

It’s been all too common for us to be smothered with emails, advertisements and billboards stating how much cash we can save in our auto insurance by going to another enterprise. This is, after all, a fiercely competitive industry. A better rate offered by another company should not mean the immediate cancellation and switching of your insurance. You need to do a few things before you take such action.

Suppose you’ve been loyal to one certain company for more than a few years and they provide a credit that nulls the first car accident you have. You may desire staying, or find out if another company can equal this deal. This is sometimes known as a “Good Driver Discount”, or accident forgiveness or longevity discount. The auto insurance company rewards your loyalty by looking past car accident number one. This kind of insurance is different from luxury car insurance as it looks first at your loyalty to the company. Hence, as an exchange, they will give you some offers and benefits.

The discount amount may be pretty steep. As the majority of accidents can raise auto insurance rate by up to 40% for 3 years, there can be hundreds of dollars saved over that amount of time. However, switching companies means you lose that credit you’ve accumulated. Having an accident while with the new auto insurance enterprise may end in consumer regret when you see your rates raised by 40%.

Yet another thing to be wary of, is to be certain the auto insurance business you’re going to isn’t giving a teaser rate for the first half year just to get your business. If so, they may jack up the rates 6 months later after they have you on their records. If the auto insurance rate the new company quotes appears too good to be true, then you need to do additional research. A fast method of research is browsing insurance forums or by searching Google for “(name of insurance company) + Reviews”.

Beware of hidden fees! This one can take you by surprise. More than a few auto insurance companies make sneaky charges for monthly payments, usually in the $3 to $5 a month range. Adding this up in a year will be $36 to $60. Don’t let this take a bite out of your savings; make sure to factor in the rates you’re comparing. Be confident that you really are saving when you switch companies.

Two more things to remember when browsing around for auto insurance: Hours of operation and the company’s website. Their hours should fit well with your hours. If they’re open from 9 a.m. to 6 p.m. and you work the same hours, then just how are you supposed to call them if you need to make a claim or if you have an issue that needs to be cleared up?

If you perform all of your business online, the new auto insurance company needs to have a competent website that can assist you in all hours of the day.

As covered, you can save cash by surfing around for auto insurance. You must make sure to keep the aforementioned tips in mind to land the great deal you’re looking for.