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Oct '12

How to Lower Automobile Insurance in Few Minutes

People have different ways to run their businesses. Often, loyal customers are treated well and given the best discounts compared to others. They are the first one to receive a newsletter of the new product or an item that he or she had asked later. The same thing happens to the friends and loyal employees. But this is somehow not always the case in the financial services industry. When new buyers come, they tend to be given better rates than the old and loyal policy holders.

These companies like to control even bigger share of the market and therefore they need new customers. They spend most of their energy to attract them. And they are not much worried about you leaving as not many people do for various reasons. This is despite the fact that you have been buying policies for a few years. Insurers believe in the statistics which shows that policyholders rarely move to another company.

low car insurance ratesPolicyholders also do not like going round getting auto insurance quotes from several insurers. So they stay with the current insurer. Current customers need very little maintenance especially good drivers who do not make any claims. It can go one sided for many years when you do not make a claim. You pay the premium in exchange for a paper called policy.

The auto insurance companies do their calculations daily in order to ensure that they are doing well and find out where they are supposed to adjust. If they find themselves in a sticky situation with losses they will have to raise the rates and pass the ball to customers. This means that you will pay more unless you do something about it.

In many cases, when a new company hits the market and gets more customers day in day out, only few people who are actively looking for lower rates will notice them. Many of people whose vehicles are insured won’t even notice there is such a company. They tend to be partial with some brands they know than finding out about new ones. And so the old policyholders will not go away for the sake of several hundred dollars.

This gives answer to the question that you could have asked yourself which is why do new policyholders are given better rates. If you look back from the time you joined your insurer, the case was same. You were given great deals that attracted you. If you think of it, you will notice this as the main tool for getting new customers. This is actually one of the best ways to convince a driver to leave the current insurer especially when they are disappointed.

Some companies have marketing periods though you can register with them at any time. During this period they come with excellent packages and reasonable rates which are different from the ones that they already have for the old customers. The premium will be very reasonable to ensure whoever comes across will go for it. To escape from this kind of a business trap, be wise. Understand how business is done. Remember during the renewal period you can go get a lot of quotes and challenge your insurer with it.

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