Reason #5: You May Be Overpaying
Insurance prices fluctuate across the board. While being underinsured can be more detrimental than having no coverage at all, many insurance companies reserve their best discounts for customers on the verge of leaving. If your provider only offers competitive rates when you threaten to cancel, it might be time to find a company that values your loyalty and cancel your current policy.
Reason #4: Your Insurance Is Outdated
Two decades ago, the recommended coverage was $100,000 per person, $300,000 per accident in bodily injury liability, and $50,000 in property damage liability. Fast forward to today, and both technology and medical costs have soared. A smartphone now costs over a thousand dollars, and hospital bills for car accidents can easily exceed $100,000. Most agents now suggest carrying $250,000 per injured person, $500,000 per accident, and $200,000 in property liability. Make sure your coverage keeps up with the times.
Reason #3: You Don’t Know What’s Out There
Today’s insurance shopper is savvy and discount-conscious. Many insurers offer special rates for safe drivers, young drivers, or those who spend minimal time on the road. If you present a lower risk, why pay a premium rate? Explore options like safe driving and pay-by-the-mile insurance. With today’s technology, you can find a plan that fits your lifestyle and budget.
Reason #2: Don’t Settle for Lousy Service
The trend towards low rates often comes at the cost of customer service. In the insurance world, particularly automotive, you often get what you pay for. How often does your insurer reach out with new discounts, products, or coverage updates? There are agents who will advocate for you, especially during claims. Ensure you have a proactive agent who prioritizes your needs.
Reason #1: You May Not Be Properly Covered
The insurance sales process should be consultative. When seeking a quote, look for an agent who asks the right questions. For example, if you own a home, two cars, a boat, and a motorcycle, does your agent inquire about your backyard pool? An umbrella policy for excess liability might be necessary, as accidents can happen even to trespassers. If your insurer never reviews your plan for potential risks, it’s time to start shopping for better coverage.
