Statistics show that many vehicle owners are pleased with services offered by the US carriers. This is why most policyholders do not look for an alternative quote elsewhere. Though this is a fact, there are those who find it hard to get affordable policies. If you are not satisfied with services offered by your insurer you have the option of switching to a better cheaper car insurance company.
Admittedly, there will be companies that offer very good low rates for the first year. But they may not be able to maintain those cheap rates next year and start increasing the premium. That would inevitably force you to change again for another insurer shortly. On the contrary, there are good cheap auto insurance companies that stand out because of the services they offer and their rates. This is the selling point for any insurer. When people get to know and like them they will not hesitate to spread the news to their friends thereby creating a keen buyers for them.
There is one thing that makes a good insurance company stand out. That is the renewal of the policy. It can go two ways. The company will either lose policyholders to rivals or get more buyers. Insurers would want to wrap a renewal up as quickly as possible before policyholders start shopping around for better or cheaper deals. That is why it is tricky for a company to jack up the premium for a profitable policyholder in fear of losing them to competition.
The best weapon to the disposal of the US automobile insurers in fending on competition is auto renewal. It gives policyholders sense of security that their policies will be renewed even they do nothing about it. This prevents them from shopping for better deals.
One of the main reasons why companies cut their rates is the expectation of many renewals. They may not make much profit for the first year from a new policyholder. But should the policyholder stay for a long while they will make it up for the initial slim profits. And most US carriers enjoy pretty good renewal ratios according to surveys. For whatever reason policyholders aren’t keen to switch.
With this knowledge insurer can comfortably offer lower car insurance rates to new applicants in the hope that they will be able to win them over in a competitive US market. The problem for the existing policyholders is that they keep the same old rates for them. So, the policyholders who don’t shop around lose out for years. In other words, it may be a good idea to switch vehicle insurance providers every few years if you want the best rates.
You shouldn’t be quick to renew your policies. Why not have a look at these good cheap car insurance companies wherever you live in the US. We have listed the cheapest insurers in your area that should encourage you to get quotes and compare it with your renewal terms. You may be hugely surprised with the prices on offer from companies that are as good as your current insurer.