1.I thoroughly enjoy advertising insurance companies do
2. I am generally disgusted by the advertising insurance companies do
So last week, like any other week, you and I get multiple pieces of insurance related advertising in our mail. You were also subject to countless radio and t.v. ads. Combine this with the multiple times you saw an ad while on the internet and it is practically inconceivable. How much advertising do you really need to do?
So the paperwork for my renewal came in the mail this past week. Just like millions of other people I went and looked at the rate. So now what? Well here are some things I look for in my own renewal, as well as yours when I have the chance to renew it;
Is it correct? Yes, is it correct. Is my name spelled right, are the right vehicles there are all my discounts correct. Before you think about the rate lets make sure the basics are correct.
That’s right you can get more coverage for less money. Now the problem with this is most of the companies push low rates mostly give you low coverage. Then when you shop you are actually not able to get better rates because you got duped into a low rate by taking low coverage.
A solidly caffeinated(made up word) drink from your local coffee shop is sometimes the same price as one month’s worth of much better coverage. That’s right for $3-$6 you can purchase $100,000 or more in coverage. So is the company that brings you in on lower rates even interested in protecting you and your family or just providing you a low rate for insurance.
Step 1.Remember why you have insurance, it is not for the little annoying thing that you can comfortably afford to fix. It is for the event that you need help paying to fix. Filing a claim because “I pay for insurance why shouldn’t I use it…” can get you in to trouble. **What is trouble? Trouble is having rates on the higher side of the market for at least three years**
Why not? When was the last time you changed companies? When was the last time you actually made your agent or broker actually earn their commission. Make them actually shop around, we are in a competitive market here in New York why not take advantage of it.
How do you start?
Pretty simple, two steps;
Start with a “baseline” of coverage that you are comfortable with having in place.
Talk to 3-5 companies to see where your rate compares.
That’s it. Worst case scenario you feel really good about your rate. Best case you save some money and maybe find a better agent.
2003 Volkswagen Jetta GL: So according to KBB.com the Good Trade in Value is $1700 and Fair is $1125 so maybe I am around $1500. Now private party says $3225 and Fair is $2525, let’s keep being reasonable and say $2875 as private party we won’t use retail because this car is not in excellent condition.
How about Edmunds? A little different process here comes up with $2734 as a trade in $3752 as a private party, same thing here retail seems a bit high.
So KBB average with my adjustments is $2187.50 and Edmunds is $3243 that is about a $1000 difference.
It is your means to get around town, to work, to play to kids activities. it is worth a lot to you but what is it worth to an insurance company? The cost to repair a car is going up so if your car is older you need to keep in mind that if the cost to repair your car is more than the value of the car it may not get fixed. Now what is the car actually worth in dollars? It may not be as much as you want.