FinanceDogma – Finance, loans, creditcard and mortgages

November 2, 2009

How to get lower insurance costs

Filed under: insurance — Tags: , , , , — admin @ 1:27 pm

Have you ever noticed that, as time goes by, your insurance seems to get more and more expensive? Now, granted, if you are older than your coverage probably has gotten less expensive, but if you are about 21 or 22 years old, you have probably seen increases. Is it the economy? Well, maybe not exactly. See, I had an issue this past year where my insurance company would raise my premiums about every six months or so. It was only like $10 per month, but over the span of two years this got a little ridiculous. Not to mention that fact that in that span of time I had gotten married, had a child, moved away from home, started my own business… etc. etc. I should have been getting better rates, when I was actually getting hammered by higher ones.

So, I decided that enough was enough. I started getting bids from other companies, and believe it or not, I found some other insurance providers that could give me the same level of coverage for JUST ABOUT HALF of what I was paying now! That sure isn’t saying much for my current company, huh? Well, I called my company up to tell them I was canceling my coverage (boy, you should have heard how fast I got to talk to my agent THIS TIME… she is usually so busy…). She asked what the problem was, and I told her simply that I was paying way too much, and that I had gotten better deals down the road. So, she asked me if I would give them a chance to re-figure my coverage, so that maybe I could get lower costs and stay with them. I told her to give me her best price, and then we would see.

Anyway, she called me back about a half an hour later, apologizing up and down for not calling me to update my policy. It seems that I had been eligible for a ton of discounts, but none had been given to me. So she read me off all of the discounts I would be getting, asked me how my mother was doing (we live in a small town), and kept apologizing for the outrageous prices I had been paying for the last two years. Well, after it was all said and done, I got a quote from her for about the same price as my other best quote. Also, they offered to waive my “renewal premium” or whatever it is they call it. So, since it was pretty close to the same price I would be paying at any other office, I went ahead and decided to stay with this company. After all, I have been with them since high school, and I think we understand each other now!

But the bottom line is that insurance providers are not paid to give you discounts… they are paid to keep you paying them for coverage. So, if you can get better quotes from other offices, call your office up and ask them what is going on. Tell them you can get better prices down the road, and then smile to yourself as you hear them stammer and stumble around trying to keep your business. It is sad and amusing both at the same time, though not the least bit convenient for you.

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