At the end of last year, I was asked to share the following guest post from Reviews.com
Reviews.com was started in 2013 by a small group of obsessive consumers with a passion for the truth, and the desire to find the best. They do the research on various topics, services, and products and try everything themselves before promoting it. For my blog, they sent over some adulting tips and finding the best insurance. Take a look!
Finding the best auto insurance policy
Personal finance can be an exciting topic to talk about — budgeting, saving for retirement, and even investing. Auto insurance isn’t typically one of those conversations that fire people up in the same way, but it is an adulting essential.
In Canada, more than half of every dollar of revenue auto insurers get is paid out for claims. And since customers are who pay the premiums and generate revenue for them, you are an important part of the industry. The team at Reviews.com recently released a guide to help customers better understand how to get the most out of their policy and find ways to save money. They determined three key factors to consider when looking for a policy that’s right for you:
Look for coverage over price
Everyone is on a budget these days, right? One of the most important mistakes that people make when shopping for an auto insurance policy is letting price dictate their decision. By looking at price first, customers could be choosing a policy that offers far less coverage in crucial areas. And while you may be paying slightly more on a monthly basis for coverage, this can cost you thousands or even tens of thousands of dollars in the event of a collision if you’re under-insured.
Look for a policy that includes adequate coverage in these areas, which tend to be lacking when you opt for the cheapest premium:
- New Car Replacement: this option gives you enough money for a new car (not just the worth of your wrecked vehicle)
- GAP Insurance: normally, insurers will pay you the worth of your wrecked car at the time of a collision. This value is oftentimes a lot less than what you might actually owe for the car, leaving you still in debt from the wreck. GAP insurance covers this difference.
- Uninsured Motorist coverage: uninsured motorists are those who either have no insurance, a policy which doesn’t meet minimum liability amounts, or has an insurance company that is unwilling or unable to pay the claim, leaving the cost of damages up to you.
Customer satisfaction is king
The most important part of any auto insurance policy is what happens when you need to use it. While most people plan to never get in an auto accident, studies show that drivers will get into a collision roughly once every 18 years, so maybe 3 times in their life. That’s three times when they’ll need to navigate the claims process and speak to representatives on the phone to ensure they’re fairly compensated for their claim. Your insurer’s customer service satisfaction is key, and independent companies like J.D. Power (http://canada.jdpower.com/
Understand who you’re working with and play the game
Auto insurance is a lucrative business in Canada — how many other companies can depend on hundreds, even thousands of dollars of payments from each customer every year? Understanding how these companies work can help you stay ahead of the game to minimize your premium.
Premiums are the lifeblood of auto insurance, and insurers do their best to keep their prices at a high enough point to maximize profits while still retaining their customers. To do this, they mine browsing data like shopping habits and credit scores to determine if you’re at risk of leaving their company for a different insurer. Customers who aren’t shopping around for auto insurance are likely complacent with their current premiums, so companies feel comfortable charging them higher premiums — it’s not like they’re going to leave! Send the message to your auto insurer that they need to keep prices low to keep you by comparing auto policy quotes online every two years.
If premiums are the lifeblood of auto insurance, then retaining the customers who pay those premiums is just as important to insurers. Don’t be afraid to ask for discounts as you discuss your options with a representative. Companies offer a variety of discounts for factors that you might not expect, and they may even give you a break if you’ve recently lost a job or paid off your vehicle.
At the end of the day, it’s most important to do the hard work of finding a policy that will keep you safe in the event of a collision. To read more tips and tricks for finding the best policy for you, take a look at their full article here: https://www.reviews.com/auto-
