Many policyholders assume that vehicle insurers would automatically check and apply all the discounts they qualify at each renewal. After all, we are living in a computer age and it only requires few tweaks on quote calculation programs. It is definitely not much to expect the best rates when you are loyally sticking with a particular carrier. However, do they really go through details and find them for you? Or do you need to learn how to get automobile insurance savings and apply this knowledge at each renewal like a ritual?
What Is In It for Them to Track and Offer the Best Rates?
The easiest way of understanding what would really happen in most cases is to look at the question from their point of view. If the client is happy to pay the higher premium why should they disturb him/her? This may actually wake them up and they may start searching around for even better deals.
So, most companies would keep working on the original rate chart for established policyholders even though those prices have changed for the better. On the other hand, they would be quick to apply the increase. Unfortunately, this is how it goes. Actually, they are not isolated in this practice. For example, do you get a call from mortgage, credit card or utilities suppliers when they reduce interest rates or prices? You already know the answer for this question; never. But they are quick to apply the hikes to your account.
It is a usual practice to offer great rates for only new customers because they want to steal them away from competitors. Most companies are not ashamed to tell you that the deals they are running right now is only for the new applicants and they cannot switch to this new product or price plan. Most of them mastered the skills to charge more for lazy policyholders while they can somehow find a way to offer rock bottom prices for comparison shoppers.
Would a Broker Alert You to Savings Qualified?
Again, what is in it for them? Why would they try to fix something that is not broken? It requires time and effort that can be used to attract more business. Most brokers wouldn’t go to the trouble of checking the market for lower premiums and more comprehensive coverage at each renewal. They would merely pass the renewal terms received from the existing source and keep collecting the commission.
Furthermore, it is not really in their best interest to help you save. The commission is based on the premium you are charged. The higher it is the bigger is their cut. Besides, nobody is complaining.
Who Can Save You Money on Car Insurance?
The simple answer is you. If you want the lowest price you need to take the time to learn how to get them. Why would anyone else go out of their way to help you when you cannot be bothered to spend a few minutes? Again, a broker, agent or provider would have no problem telling you that you didn’t ask for it and that is why they didn’t check.
Don’t be naïve and under the illusion that everybody’s job is to look after you as best as they can. If insurers give latest deals to existing customers they would be losing billions of dollars every year. They cannot certainly afford this to happen. In a way, long standing loyal customers help them to afford offering great packages for new ones. It is no secret that current policyholders are seen as captive audience. The new ones are the ones who are free out in the wild and they must be tempted with the lowest quotes.
How to Get Discounts on Vehicle Insurance?
- Stay on Top of Renewals
It would be a mistake to let a policy auto renew each term. You usually get plenty renewal notice. In addition, it is pretty easy to get a few cheap instant car insurance quotes online any time you like. The internet is open all hours. Get a few and compare them with each other and existing policy terms. Don’t be lazy about it and let it run.
- Talk to Them
Do you know how much is a median premium in your area? First check this post and find out if you are paying much more than the average. This will give you an idea where you stand and how aggressive you should be in efforts to save money. If you are a typical driver with no obvious issues you should be able to get close to median figures.
Have a little chat with them either after or before getting alternative quotations. You don’t need to be very smart or well prepared to get them reduce the premium. Actually, playing dumb and asking a few simple questions can work even better. All you need to do is to ask them if there is any way it could go down a bit.
A great trick applied by most smart sales people is to give a little discount to a customer who is enquiring about prices and keep them quiet or seal the deal. There is a pretty good chance you will get some savings out of calling them. It is always worth trying anyway.
- Find out about Getting Discounts on Auto Insurance
This doesn’t require you to read volumes of books. All you have to do is to keep your ears open for chatters, ask around or search online for discounts you may qualify. Ask friends and colleagues and find out how much they are paying and how they achieved those cheap rates. This post on how to economize compiles 20 tips for you.
Myths to Bust
It is a myth that auto insurance companies don’t change rates or come up with offers because you are haggling with them. They will be quick to respond with “price matching” when they realize you are about to leave out the door. It costs money to acquire new customers and therefore it is silly to lose the ones they have.
Most companies will find a way to sharpen their pencil when they realize that is what they need to do to keep the business. If you don’t believe me read the story of Thomas Mitchell and find out how he got his insurer to halve his premium.