Are Car Insurance Estimates the True Final Premium?

If you’ve ever had a representative quote a price for car insurance, only to find the premium higher when you get the first bill, you’ll understand how deceptive some estimates really are.

Sometimes the representative doesn’t mean to bait and switch. Perhaps, there’s a traffic ticket in your past that you forgot since it was so long ago. Sometimes insurance companies look at your credit rating, something your rep has no privy to, and increase the cost of the premium because of a negative rating. This increases the cost of the insurance but your representative would not have known it at the time of the quote.

Unfortunately, you might end paying more than your original premium. After you’ve already canceled the first policy it’s too late to change your mind and renew the policy you dropped. If you’ve had a negative change in your insurability then your old company now looks at the record, as though you’re a new customer and increases your rate. How do you avoid this? You have several alternatives.

First, find several websites that offer car insurance estimates for multiple companies. Check your present coverage and input the exact coverage for your quote. You need to be certain to compare apples to apples. If you have a $250 deductible for comprehensive coverage and the online quotes you a $500 deductible, you don’t have as much coverage and the price should be a lot more inexpensive. Besides the deductibles, also make certain that your liability limits are the same. This includes your uninsured/underinsured limits of liability. You deserve the same benefits you’d offer others if the other driver causes a bad collision and has no coverage or minimal coverage.

Don’t wait until the last minute to secure quotes. The car insurance estimates may not be the final premium. Look for the best rates slightly ahead of the time you normally receive your premium notice. Once you find your new premium on your present coverage, immediately apply for the new coverage requesting the issue date for your policy renewal date. This normally gives the issuing company ample time to evaluate all of your background history and give the appropriate premium.

Online coverage quotes often have your background information available immediately, unlike the agent in the field. However, you might input some information inaccurately or have a snag along the way. Making certain there’s adequate time for discovery of the error is of utmost importance when it comes to saving money. With adequate time, you’re not at anyone’s mercy to accept a higher premium.

Remember, paying more money for car insurance doesn’t mean you’re getting better insurance. It simply means that company has either higher operating expense, a worse loss ratio, less new premium or less productive investments. You can get insurance with excellent companies that offer great service for less money when you secure several car insurance estimates and shop before your next premium notice.