Can I Save Money by Switching Insurance Agencies?
If you listen to the radio or watch TV, chances are, you hear numerous commercials and advertisements claiming significant savings when you switch insurance agencies. In many cases, these deals sound too good to be true but can you really save money by switching to a new insurance agency?
Lets look at some of the benefits of switching that may result in savings on your annual insurance premiums and fees:
A Fresh Perspective
While the benefits of dealing with the same insurance provider for years and years is working with someone you know and trust, it doesn’t hurt to have a fresh set of eyes look at your policy. Much like with anything, getting a second opinion might uncover savings and benefits that you did not know you were entitled to. A fresh perspective may even offer new advice based on your current situation that results in savings.
Has Your Situation Changed
Many people live with the same insurance policy for most of their lives without realizing that certain changes to their lifestyle or home situation could result in significant savings. For example, as your kids grow up and move out, they can be removed from your policy, or if you have children away at university or college, they may be eligible for a good student discounts that offer more savings.
Things to Keep in Mind
When planning to switch insurance agencies, companies will often advertise significant savings of hundreds of dollars per year. But what they dont advertise is the specific coverage. Savings and value are important, but when it comes to insurance, you want to make sure that you are receiving the same coverage and protection. Its common for insurance agencies to promote savings while making cuts to the coverage that your old insurance policy included.
How Does Risk Influence Premiums?
Insurance companies calculate many risk factors when putting together policies. Whether it’s your credit score, driving record, make of car or age, all of these factors play into the cost of your insurance policy. This is why providing the most accurate information is vital to getting the lowest rate possible. It’s also the reason why some people may not be eligible for a low rate especially if they have numerous tickets and several accidents on their record.
Large Agencies vs. Smaller Firms
Large insurance agencies are often the ones with the most advertising money. They’re at the forefront of our minds with their catchy jingles and funny catchphrases, but did you know that larger agencies are often a little pricier than smaller firms? These companies have higher overhead costs to operate and, therefore, must charge higher premiums to cover their costs. Smaller agencies have fewer overhead expenses and may be able to offer more discounts.
The general financial health of the insurance agency is also a factor in their rates, as a company that is floundering or struggling will need to charge more to generate higher revenue while a financially strong company can offer better discounts to attract new customers without worrying about causing financial hardship.
There are many reasons to switch insurance agencies. If you are not satisfied with your current provider or you simply wish to save some money, as long as you read the fine print and practice some smart consumer tips, you can save on your insurance rates just like the commercials claim.
For more information on switching your insurance policies, call (416) 787-1668 and speak with the experts at DMW Insurance Ltd.