by Guest » Mon Dec 21, 2009 10:21 am
A few days back I was surfing through a couple of auto insurance carrier sites when my eyes struck an online quote tool. I went on selecting through the various options till it offered me a quote that was lower than the one which I currently have with my carrier. Now that I've come across someone who's using the same carrier and has received a letter depicting a rise in premium, I'm a bit scared as to what I should be doing. Should I change my auto insurance carrier? Is it gonnabe a problem with my current carrier if I shift in with a new one?
Posted: Mon Dec 21, 2009 11:35 am Post Subject:
Hi,
Let me offer some advice. If you dont have long until your insurance needs renewing then then I would recommend seeing your contract through and then changing carriers. If you have only just started out in your current insurance contract then I see no harm in changing to a new carrier immediately and saving money on your premium.
Chris King
Wedding Insurance Provider
The Insurance Specialist
Posted: Wed Dec 23, 2009 07:00 am Post Subject:
Now that I've come across someone who's using the same carrier and has received a letter depicting a rise in premium, I'm a bit scared as to what I should be doing.
There could be so many reasons leading you through premium hikes! Have you asked this friend regarding the cause of this premium rise. Did he file claims in the recent past? Did he get involved in accidents?
Also, don't always rely on online quotes which are like ball park figures. First of all, you should go through the settlement history of this new carrier and other such things before you may confide in.
Posted: Wed Dec 23, 2009 02:38 pm Post Subject: insurance
(Saying this in 'general', I guess).......if you have a bad 'gut' feeling about an Insurance Co, then go by that 'gut' feeling. I'm not saying ALL Insurance Co's are 'bad' ( lack of a better word). I'm just saying THIS particular one may not be 'right' for you.
Posted: Wed Dec 23, 2009 07:03 pm Post Subject:
A few concerns I have for you. Are you confident the coverages you were quoted with the online tool are the same as you are currently carrying?
Second - when a company has a rate increase, it doesn't necessarily mean everyone they insure will be affected. They may be targeting a certain age driver, certain vehicle types, certain territories (think of territories as zip codes), and so on.
A company can have an overall rate increase for a majority of their customers, but some may actually receive a rate decrease.
With so many factors involved, I would recommend contacting an independent agent (an agent that represents multiple carriers). They would be able to give you an precise explanation of the coverages you are being quoted and how a disclosed rate change may or may not affect you.
Posted: Thu Dec 24, 2009 06:20 am Post Subject:
A company can have an overall rate increase for a majority of their customers, but some may actually receive a rate decrease.
Does it only happen with consumers who've maintained a good driving record? Is there any other factor which may lead to a rate decrease for such consumers?
Are you confident the coverages you were quoted with the online tool are the same as you are currently carrying?
I'm sure of the nature of coverage since I had to choose between the options, but I'm not too sure of the total worth of coverage that they'd actually offer.
How does a carrier declare a rate increase for an entire territory? I wonder, since there could be both good and bad drivers within a territory!
Posted: Tue Dec 29, 2009 10:27 am Post Subject:
Switching to a different Auto insurance carrier is not at all tough. If more members belonging to a single coverage group start filing claims in a particular year then their insurance costs would probably rise. Under such circumstances, it truly pays if you shop for coverage. You may come across a competitor who'd offer some discounts and lower rates for you.
Posted: Tue Dec 29, 2009 03:50 pm Post Subject:
For a simple explanation, let's assume a carrier found that 16 year old drivers were causing more losses than they had in the past. At the same time though, they see that people involved in accidents with new Honda SUVs are not sustaining near the bodily injury than others in similar crashes with other SUVs. Therefore, the carrier decides to raise rates for 16 year olds for liability coverages and on the same rate change, they create a new discount on medical coverages for owners of the Honda SUVs.
16 year olds will see their rates go up
Honda owners with medical coverages will see their rates go down.
All in the same rate change.
It's all based on the numbers and in all the years I've been selling insurance, I've seen rates go up and down like roller coasters. I have seen while one company increases their rates for young drivers another decreases their rates for young drivers. This is why I believe in the independent agency system. An independent agent has access to multiple insurance companies, therefore, they have the opportunity to find the company that is priced best with the best coverage for you.
Posted: Wed Dec 30, 2009 07:51 am Post Subject:
Hi AnMarieB,
I'm just a bit confused over one thing-
Suppose I'm 32 years old and I own a Honda SUV.
Assuming the coming year shows more accidents with people aged 32 years and less accidents with Honda SUVs, do I get counted for both the rate hike as well as the discount?
Aaronborecky
Posted: Wed Dec 30, 2009 02:24 pm Post Subject:
All factors are considered, yes.
Posted: Thu Dec 31, 2009 09:08 am Post Subject:
I'd like to bring to your notice one thing that's been repeated time n again across all insurance forums. Please don't forget to get a new policy ahead of your canceling the current one.
In case you forget to have one in place then there would be a coverage gap. With many carriers, you'd need to show the proof of new coverage before your old one could be canceled. Make sure that the commencement of the new coverage coincides with that of your cancellation of the old one.
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