We have already seen Tests 1 to 5 in the previous posts to check and select the insurance company. In this blog post, we will end the series with the last tests which also plays key factors in the selection criteria.
Test 6: Renewal Rate Change
Many insurance companies offer an attractive discount rate for the first premium period to get you on their books. Once you are in, many companies will try to ripe you off by increasing the premium every other renewal. There might be other factors involved in the increase of insurance but most of the time they increase without giving any reasons.
After spending lot of time researching to buy insurance, nobody wants to change just after 6months or year and do go through the same cumbersome process. So, many of us try to stick with the same company even with increase because of this reason and insurance companies take it has an advantage for them.
You can check the renewal rate change rating in the above mentioned state websites which gives another clue about the insurance company. Try to score your insurance company according to their rate change ratings.
Test 7: Recommendations from your friends, local body shops
“Word of mouth” is a powerful marketing tool. It works well in almost all cases. Check with your friends and relatives or others that you can trust. See which companies they would recommend. Ask about their experience and get their perspective. You can even contact the local body shops or auto repair shops you always use and get their view point. They usually recommend insurance companies which encourages using OEM (manufacture parts) instead of aftermarket part. That’s another important factor to consider as you want your vehicle to be fixed with original parts instead of aftermarket parts. Score the companies with the feedback from your friends and trust worthy person.
Finally, tally up the score for all the insurance companies in the list from each test criteria and you should have your own ranking for each of them. That surely would have narrowed down your list one or two companies which you can use. Once you decide on which company you want to go, just go to their website to finalize your quote.
As it was bluntly mentioned at usnews.com, Car insurance is like betting against the odd. You pay a monthly fee to an insurance company. They’re hoping that you won’t get into an accident. You’re hoping that you won’t, but betting that you will. If you “win,” the insurance company will pay your accident costs. If you’re not in an accident, the insurance company wins because they get to keep your money. Losing this bet isn’t bad, though. You won’t have to deal with being in an accident, and the longer you lose the bet by not getting into a wreck, the less you’ll have to pay the insurance company. But, the day you’re in an accident, you’ll be glad you’re covered by good insurance company.
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