If you have been thinking that auto, home and business insurance premiums have been rising rather significantly over the past couple of years, you are not mistaken, most insurers have increased rates in all areas due to heavy claim losses.
Even though most people have been experiencing the higher price of insurance, there are many that are paying even more than they should.
Been With The Same Company For Multiple Years
There is nothing wrong with staying with the same insurer for many years. You may trust the company, formed a relationship with an employee agent, received good customer service, or have had a claim that was handled promptly and fairly.
But what you may not realize is that the policy you took out 5, 10, or 20 years ago has progressively increased in price at a greater rate than the overall market. This could be due to higher than anticipated insurer losses for that particular line of business over time or an overall company strategy.
The ironic thing is, in many instances, you could get a quote with your same insurance company for the same coverage and receive a significantly lower rate. Insurance companies phase out old auto, home and business plans periodically and replace them with new offerings, usually when they are looking to increase new business and market share.
The problem for you is that even though you are a loyal long term customer, always paying your bill on time, you will not be offered this option unless you ask for it.
You Have Your Policies With A Captive Insurance Company
As opposed to an independent insurance agency, a captive agency only has access to one carrier. There is nothing wrong with being insured with a captive insurance company but in general, they only have one product for auto, home and business insurance.
If the captive insurer raises their premiums for any number of reasons, there’s not much they can do for you.
If you’re with an independent agency and your insurance premium increases significantly for any one carrier that agency can then shop it amongst their other markets to often find a more cost friendly option for the same level of coverage.
Your Qualifying Insurance Rating Factors Have Improved
A huge rating factor in today’s insurance world is your credit rating. Maybe you took out an auto policy a couple years ago when you had bad credit and have now improved your credit rating from poor to good or even excellent. Your current auto premium is high compared to the overall market because it’s still being priced on a tier for those with bad credit.
In this particular scenario, simply requesting new auto insurance quotes would result in much lower premiums assuming no at-fault accidents or driver violations occurred in the meantime.
Credit rating is just one factor among many that you may have improved on, yet not have it reflected in your current policies without getting new quotes.
Insurance Bundles and Missed Discounts
Bundling your auto, home, business and other personal lines policies together can result in substantial multi policy cross discounts. For those that have multiple personal lines policies with different carriers, the most cost effective option may be to place them all with one insurer which also makes policy access, customer service and bill payment a much easier process.
Many people qualify for insurance discounts and may not even know it. Especially pertaining to car insurance, discounts such as accident prevention courses, good student discounts, EFT payment plans and more.
It doesn’t hurt to check with your insurance agent to make sure you have all discounts you are eligible for applied to your policies.
If you have any questions regarding auto, home and business insurance options, please contact us, we’re always glad to help. The NY Insurance Hub serves Albany, Schenectady, Troy, Latham, Cohoes, Watervliet, Clifton Park, Saratoga Springs, surrounding Capital Region areas and all of New York State from NYC to Buffalo.