The good news is that your car insurance policy is not permanent. If you are not happy with the company covering you now, you can always switch to someone different.
If you want to legally drive a car, you need a license, you need a car, and you need to have an insurance policy that covers that car (and you). This is as far as most people get before they start to feel overwhelmed and confused. There are so many different companies and policies to choose from!
Who do you work with?
Here are the top five reasons that people change their policies and providers.
The cost of an insurance policy is not universal. You can get the exact same coverage at twenty different prices from twenty different companies. It is entirely possible that you can get the exact same coverage you have now for a fraction of the price from a different company. It is important to note that a lot of different factors go into figuring out what an insurance policy. Not all those factors center on you. The cost of running the business, offering other benefits, etc., also figure into what you pay for your policy. This is why you need to consider more than your out-of-pocket expenses before switching to a new provider.
- Personal Choice
One of the reasons that many car insurance policies are cheap is because you are limited when it comes to maintenance and repairs. Much like an HMO, your car insurance provider can require that you only take your vehicle to one of its approved repair shops or dealerships. Progressive is famous for this, as is Geico.If it is important to you that you decide who “treats” your car, you might have to come around to paying a higher price.
What “perks” does your insurance policy offer to you? Some of the best perks to look for are the lowering of your rates if you go twelve months without an accident. It is also good to go with a company that will pay for your rental car if you have to leave your car in a repair shop overnight (or for several days). Some companies will also lower your rates if you bundle your car insurance with other types of policies you might need. AllState, for example, offers discounts to people who bundle their car and rental/homeowners’ insurance policies.
- Circumstances Have Changed
When your circumstances change, you should start checking around for a new insurance policy. A new car often requires full coverage until the car is paid off. Some local insurance companies do not offer continued coverage when you move to a new city or state.Another big difference is when you add a new driver to your policy. Depending on that driver’s age (and, sadly, often gender), your rates might go up and you might have to add different areas of coverage to your policy.
- Customer Service/Company Issues
What kind of customer service do you get from the company? Are the representatives attentive? Do they treat you with respect? How do the claim adjusters and representatives of the company treat the people who work on your car? It is important to know these things. If you (or your mechanic) is treated rudely or short-changed by the company, it is time to switch.It is also worth it to take some time to look into the ethics of the company. While not a car insurance company, GoDaddy lost floods of customers after it came out that the CEO of the company was into killing large animals for sport (and they lose more every time they air a new commercial). Make sure the powers that be at your insurance company are not engaged in anything that you find abhorrent. You don’t want your money to pay for things that you ethically disagree with, do you? It is possible that your current policy meets all of your needs and requirements. If it does not, though, use these criteria to help you choose someone else.