why you need to shop your auto insurance

Shop Your Auto Insurance

Why you need to shop your auto insurance today!

First, I’ll tell you about one incident that happened this week, then I’ll explain why you need to shop your auto insurance.

Long time client referred her sister, who was with a direct writer insurance company (think “on your side” or “good hands” or “neighbor” insurance companies) for 10+ years. Single car risk, decent credit, 8+ year old car and no homeowner’s to go with it (she was a caregiver to her elderly parents). She was paying $1,400 per year for this car and we got an exact replacement auto policy for $639 per year – same coverage = $761 savings!

If you have been with the same insurance company (any of them, not just the one’s above) for 5, 7, 10+ years, you are doing yourself a huge dis-service by not having someone else look at your auto insurance policy.

Why you need to shop your auto insurance today!

Car insurance shopping

Auto Insurance

Five years ago, Safeco Insurance had 5 levels of insurance costs (Super Preferred, Preferred, Standard, Etc.), 4 years ago, Traveler’s had 6 levels of pricing (also called by different names) and New York Central Mutual had 5 pricing “tiers” too. Today, Safeco Insurance Company has 92 “tiers” of pricing, Traveler’s Insurance Company has 96 “tiers” of pricing and New York Central Mutual Insurance Company has 86 “tiers” of pricing.

They have all went to an algorithm style pricing, meaning, it starts rating you as the various factors are plugged in. Where do you live? Homeowner or renter? Married or single? Credit score? Kind of car you drive? Any tickets show on M.V.R.? Any losses show on a C.L.U.E. report? Had any lapse of insurance? Rating, rating, rating, rating, rating each and every factor we plug into the quote engine. They are plotting where you fall in the algorithm, based on all this data and the characteristics of other people similar to you.

Consumers who have been renewing their auto insurance policies for 5, 7 or 10 years have never, ever had this done for them! They are still on an “old system” rate and have not been rated by 96 tiers, for example. Even if you have been a Travelers client for 7 years, you are probably better off re-rated through the new Travelers algorithm!

Why you need to shop your auto insurance today!

Now does price matter?

Cheap Insurance?

Independent insurance brokers like us are the best way to find the best “tier”, within the best insurance company for you. We’ll start to input your information 1x and the quote engine starts rating using Travelers, New York Central Mutual, Safeco, Progressive, Utica National, National General, Hanover and many more insurance companies. If you use a direct writer, as referenced earlier, you will be getting 1 price, their own. I’m not trying to put down these huge, powerful direct writing companies, they just cannot do what independent insurance broker can.

Cheap Auto Insurance?

Still, I am a firm believer that it isn’t all about price but covering what you have at risk. Your risk factors will be totally different than a 22 year old college student, living on campus. Today’s smart insurance consumer cannot base their decision on price alone but would be wise to at least find out if they have a good deal or not (we found 26% do and no changes are needed from their current situation). But their are still many consumers who continue to renew their insurance year after year and don’t search for what their alternatives are today.

Why you need to shop your auto insurance today!

Tom Larsen, licensed insurance broker


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