Many policyholders provided their details to an agent or insurer some time ago and have not made any updates since. Their current insurer or agent is calculating renewal premiums based on this outdated information. In such situations, it is not only acceptable but also advisable to request your insurer or agent to review your details with you to consider updates and check for any new discounts that you may be eligible for. This ensures that your coverage and premium remain relevant to your current situation.
Even if you have been arranging automobile insurance for a long time and are aware of some of the discounts, it is very easy to miss them. Once the agent knows you want/need to save money on your premium, a good agent can quickly go through your details and pinpoint some of the saving opportunities you may be missing out on.
For example, here are some of the vehicle insurance discounts you may be able to qualify for regardless of your driving history or credit score. On average motorists can save 9% by paying the premium in full or 3% for setting up an EFT, 2% for going paperless and 3% for signing the documents digitally. Some companies may not have these discounts but may have some other opportunities for saving money.
Surely, there are many policyholders out there who haven’t yet realized that not only they are missing out on discounts when they spread their auto insurance premium but also they may be paying arrangement and facility fees. This information may be on their quote and staring at them but they may still not see it. In addition, you may need someone like your agent to point out these little nuances in policy arrangements that can qualify you for a further discount.
Here is another example: In a multi-car insurance policy with three vehicles, it’s common for policyholders to simply list the cars and drivers without considering the nuances of primary drivers for each vehicle. In such cases, the insurer may not inquire but could assume that the highest-risk driver, such as a teenage son, is the primary driver for the riskiest car, like a luxury vehicle. This may not accurately reflect the situation, as the son might primarily drive an older, liability-only insured car to save money. An experienced agent should quickly recognize this nuance, adjust the details accordingly, and potentially save the policyholder a significant amount of money.
Distinguishing between expressing dissatisfaction with your agent or insurer over perceived insufficient discounts and politely requesting a review of your details for potential updates and missed discounts is crucial. It’s important to approach this conversation in a constructive and courteous manner to ensure that you’re not leaving potential savings on the table due to oversight or lack of information.
There are literally tens of examples of possible discounts you may qualify for by simply updating your details or tweaking your policy. Agents and insurers are involved in arranging policies everyday and they know every little detail. That is why you shouldn’t hesitate to carry out a little audit with your agent or insurer.
For example, you may be paying substantial car insurance premiums because you have a teenage driver on your policy. And you may not be happy about it because your teenager doesn’t even drive the vehicle much because he is in a college hundreds of miles away. The fact of your son being in a college more than 100 miles away from your home alone can qualify you for a 20% discount on auto insurance.
Even if you’ve been a safe driver with a clean record for decades, you might notice your insurance rates increasing due to a declining credit score that you were unaware of. Engaging in a discussion with your insurer or agent can shed light on this issue. You can then explore ways to mitigate the impact of your credit score on your auto insurance premium.
One potential solution is switching to a usage-based or pay-per-mile car insurance policy, where your credit score primarily affects the base premium, and a significant portion of the premium is determined by your driving habits and mileage, which are monitored through a telematic device installed in your vehicle. This would shift the emphasis from your credit score to your excellent driving habits as the primary factor in determining your car insurance premium. This approach allows safe drivers to benefit from lower premiums, irrespective of their credit score.
If other approaches don’t yield satisfactory results, insurance agents can explore adjusting deductibles to see how it impacts premiums. Increasing the deductible slightly often results in lower premiums, which can keep customers satisfied. If your insurer is unaware of this basic strategy, it may signal a lack of commitment to finding ways to assist their customers and properly training their staff. In such cases, you might consider switching to another carrier, even if it means paying slightly more for better service and flexibility.
As the examples demonstrate, there are many solutions that may help you lower your vehicle insurance costs. If you don’t talk to your agent or insurer you would be suffering in silence. So, you should ignore if the first agent answered the phone is being difficult and giving you the “all the discounts are already included” routine. Hang up the phone and call again until you get a nice agent on the phone who is willing to look deeper for you to see if anything can be done.
If all else fails, take matters into your own hands by reviewing your personal details, completing several vehicle insurance quote forms, and comparing the offers you receive. Many policyholders often commence this process with their existing insurers, only to discover that a superior policy with a more affordable premium may be attainable through a different automobile insurance provider.