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July 21
7 Things to Consider Before Changing Auto Insurance Providers

7 Things to Consider Before Changing Auto Insurance Providers

Everyone wants to feel like they are getting the best deal possible on their auto insurance.
That is why the grass may seem greener on the other side of the fence when they see a new ad or hear a great pitch from a new agent. However, while there is nothing wrong with wanting to get the best policy possible for your money, it is important to make a careful, informed decision before you switch insurance carriers. For that reason we have put together the following list of 7 things to consider before changing auto insurance providers.

Multiple Policy Discounts

Multiple policy discounts can be one of the best incentives available to keep all of your insurance business centered on just one insurance provider. Such discounts may be given to customers who have multiple types of policies with the insurance company such as homeowners insurance, life insurance, and auto insurance. Thus, if you are currently receiving a multiple policy discount and you discontinue your auto insurance company you may find that your rates on other policies will go up as you lose eligibility for the discount. Alternatively, before switching providers it may be worth your while to ask your current provider if they have this type of discount available.

Loyalty Discounts

Some insurance companies give customers what is known as a loyalty discount. These discounts are given to customers who have held their policies in good standing for a given required period of time. Before switching providers it is a good idea to check if you are eligible for such a discount. If you already have a loyalty discount and are considering switching companies anyway, it is also important to bear in mind that if it does not work out with the new company and you aren’t satisfied, you may no longer be eligible for your loyalty discount if you decide to return to your previous insurance company.

Availability of Other Discounts

In addition to the two discounts already discussed different companies are also likely to carry an assortment of other potential discounts such as those for safe drivers, low mileage, drivers who complete defensive driving courses, etc. Before switching to a new insurance company it is important to find out the full scoop on the availability of other discounts.

Apples-to-Apples Policy Comparison

If you are considering switching auto insurance providers based on a particular policy quote with the new company it is very important to ensure that you are doing an apples-to-apples policy comparison. For example if you have comprehensive insurance with your current carrier but are only being quoted for liability coverage with the new carrier the new carrier will naturally seem much less expensive. Likewise check total coverage amounts and make sure that the quotes are accurate for your particular vehicle, zip code, and driving record. Finally, make sure that the deductible amounts are the same or similar. Higher deductible policies will naturally come with lower premiums than low deductible policies since they also come with higher out-of-pocket expenses in the event of an accident.

Both Company Ratings

Remember that price is only factor that affects value and quality. It is important to compare the rating each company receives from organizations like JD Power, Consumer Reports, etc. Good prices but terrible customer service probably won’t be worth it. Along the same lines it is important to ensure that your potential new auto insurance company has good financial health and security.

New Company Practices

Different companies do business in different ways. It is important to find out about the new company’s practices as they relate to billing and payment, policy increases, cancellation fees, and other policy changes. If possible determine specific factors such as how likely you are to be dropped by your provider in the event of an accident or what the penalty would be for a missed or late payment.

Convenience and Comfort

Before making the switch it is also helpful to consider personal factors such as convenience and comfort. For example the proximity to a local office, the ability to pay your policy using a preferred method, your familiarity with the company, insurance agent, and other staff, and even your own personal track record with the company. Have they consistently been there for you when the chips were down or did you have a nightmarish experience in the past that already had you putting one foot out the door?

Beaty Insurance prides itself on providing outstanding auto insurance. We are always happy to discuss policies with new or existing customers and we work hard to make sure that each customer is getting a policy that fits their needs and satisfaction. Please contact us for more information.