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 their quote calculation programs. It is definitely not much to expect the best rates when you are loyally sticking with a particular carrier. However, do carriers really go through your details and find the best rates for you? Or do you need to learn how to get automobile insurance discounts and apply this knowledge at each renewal like a ritual?
What Is In It for Insurers to Track and Offer the Best Rates?
The best way of understanding what would really happen in most cases is to look at the question from insurers’ 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 their established policyholders even though their prices have changed for the better. On the other hand, they would be quick to apply the increased rates. Unfortunately, this is how it goes. Actually, insurance companies are not isolated in this practice. For example, do you get a call from your mortgage, credit card or utilities suppliers when they reduce their interest rates or prices? You already know the answer for this question; never. But they are quick to apply the price increases 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 their current customers that the deals they are running right now is only for the new customers and they cannot switch to this new product or price plan. Most insurance companies 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 Your 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 customers. Most brokers wouldn’t go to the trouble of checking the market for lower premiums and more comprehensive policy packages at each renewal. They would merely pass the renewal terms received from the existing insurer and keep collecting their commission.
Furthermore, it is not really in their best interest to help you save. Their commission is based on the premium you are charged. The higher the premium 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 best price you need to take the time to learn how to get auto insurance discounts. Why would anyone else go out of their way to help you when you cannot be bothered to spend a few minutes? Again, your broker, agent or insurance provider would have no problem telling you that you didn’t ask for discounts 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 have given their best rates and latest deals to their existing customers they would be losing billions of dollars every year. They cannot certainly afford this to happen. In a way, their long standing loyal customers help them to afford offering great rates for new customers. It is no secret that existing customers are seen as captive audience. The new customers are the ones who are free out in the wild and they must be tempted with the best rates.
How to Get Discounts on Vehicle Insurance?
- Stay on Top of Your Renewals
It would be a mistake to let your policy auto renew each term. You usually get plenty renewal notice from your insurer or broker. 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 quotes and compare them with each other and your existing policy terms.
- Talk to Your Insurer, Broker or Agent
Do you know how much does auto insurance cost in your area? First check this post and find out if you are paying much more than average premium in your area. This will give you an idea where you stand and how aggressive you should be in your efforts to save money.
Have a little chat with your insurance contact either after or before getting alternative quotations. You don’t need to be very smart or well prepared to get them reduce your 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 your premium 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 your broker or insurer.
- 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 your friend and colleagues and find out how much they are paying and how they achieved those cheap rates. This post on how to economize on car insurance compiles 20 tips for you.
Myths to Bust
It is a myth that auto insurance companies don’t change their rates or offer you discounts 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 reduce your premium 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.