Now that you have heard my recent story about insurance you realize why I chose to write about automobile insurance, I still just can not believe the audacity of ALLSTATE to raise my rates when I turned 25.
There are many reasons to shop for automobile insurance, seemingly insignificant changes in your life could lead to a major discount. Most Insurance companies will not adjust your policy automatically, you’ll have to stay in touch with them so they know what is going on with your life. I was in constant contact with my local ALLSTATE agent always telling her about good grades in school, marriage, everything. Sometimes despite the many discounts you have you may still be overpaying for insurance.
The following are a few reasons to shop around for insurance quotes are:
- Rates are too high – Although I do not have statistics to back up my assumption I would imagine this is a big factor in almost all insurance changes. This was the exact reason I changed companies. Why should I pay more for the same coverage when someone else is offering me the opportunity to save 50,100, or even more per month.
- Marriage or Life Change – Life changes including marriage often lead to an insurance discount. Retirement, College graduations, birthdays, and marriage in the eyes of insurance companies suggest a maturing. In the insurance companies logic this translates to better driving practices.
- Moved to a New Location – Over the past 4 years I’ve migrated north of town. Every time I moved farther north I ended up in a nicer neighborhood. When I started out on the military base my rates were high due to my age but they decreases as I aged. When I moved a few miles up the road to a nicer part of town I was shocked when my rates increased. When you move to nicer area’s or a new state your insurance can fluctuate due to state requirements, property amounts of the location and even the average price of vehicles in the area. My last neighborhood had a large quantity of Mercedes due to a few neighborhoods in the area, this increased my rates according to the insurance company “Just in case I should get into an accident with one of those cars my insurance would cover their damages.”
- New Car - Purchasing a new car may require you to change your policy and obtain full comprehensive if you have financed it. No bank that I know of will allow you hold a loan on a vehicle without full comprehensive insurance. Even then, perhaps the amount of coverage you have would not cover damages. For instance if you have a BMW or other car that is considered luxury the body work and parts on these vehicles are anything but a luxury.
- Career Change – A career change can mean a lot. Overall in terms of insurance it may or may not be significant. However, notifying your insurance company that you now drive only 20 miles one way to work instead of 40 may save you a few dollars a month on your premiums.
Notifying your insurance company can save you money when they add discounts from items mentioned above but it’s not a guarantee. Although it might be time consuming you should consider looking around for quotes once a year. Companies are fighting for your business these day’s, especially with the economy how it is. Just yesterday morning I noticed Allstate claimed a 98% decrease in sales for June. Based on that I now realize why my rates were increased. Next article will be about what to look for in auto insurance, and small adjustments you can make to lower your rates.
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[...] article highlights some key points to shopping around for automobile insurance. My last article discussed When to shop for automobile insurance. My personal reason was the first bullet “Too [...]