Auto Insurance Hacks, things you need to know.

October 4, 2016

Want to know a few secrets to auto insurance that a lot of people don't know...?

1. Constant price shopping hurts your rate.  There are a lot of things that go into each company's "algorithm" for figuring your rate.  If you hop from company to company trying to find the lowest rate... you will shoot yourself in the foot!  Because the lowest rate can't be found!  It's better to bite the bullet a few renewals.  Also... go see your agent and discuss your coverages.  You can call us here: 520-885-6475

2. Your credit is very fluid.... and credit matters when buying auto insurance.  In many cases a lot of life changes can influence your credit.  Buying a house, buying a car, late pays on bills and credit cards.  Some of these effects on your credit "dissipate" over time.   The timing of your insurance quote or renewal might be part of the reason you are seeing a higher rate.  Keep your current credit situation in mind when looking at your rate.

3. State Minimum coverage hurts your rate in the future.  Avoid ever using state minimums if you can.  Many insurance companies view this as a negative when calculating your rates!  A person trying to get a good rate might have to put some distance between themselves and times they only covered themselves with the state minimum coverage!!!

 

4. Everyone's behavior is taken into account when your rate is figured.  It's not just your history and behavior that effects your auto insurance rate.  It's everyone's.   Insurance by definition is pooled-risk.  And when the risk for accidents and claims rises in the "pool"... so do your rates.  Even if you've been very good at keeping claims down.  Lower gas prices means more people on the road... more people on the road means more claims, more claims means higher rates!   

5. Discount auto insurance companies don't have any special trick when lowing your rates!  Except that they front load the discounts and hit you with higher rates on renewal.  Sure you can leave them on renewal and avoid them "profit taking" on your renewal... but I refer you to HACK #1 !!!!!!!!    You are now stuck with a "discount" insurance company that is making back all the "discounts" they gave you and money they "saved" you... or you can hop from company to company also raising your rates.  

6.  Find a good agent that gives you good customer service and treats you very good!  Stick with this agent!  View your auto insurance rates by 12-18 months cycles not just the 6 month renewal.  Sit down with your agent and make sure your coverages match your needs and make sure you are getting all the discounts you qualify for.  

 

 

 

 

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