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One of the questions frequently
heard by insurance agents concerns the need to comparison shop for auto
insurance. Generally this question comes from an established
customer of a major insurance company. Simply put, this customer
asks, "I've been insured with XYZ Insurance for ten years and I'm
happy with them. Why should I bother to shop around for auto
insurance?"
Actually, that's a very good
question. And there's a very good answer. Money. Plain
and simple. Money.
For example, a recent survey compiled by a
major auto insurer in Louisiana showed that auto insurance rates varied
widely from one company to the next. In fact, the average difference
between the highest and lowest companies' rates was in the neighborhood of
$600. That's a pretty healthy savings for making a couple of
phone calls to insurance agents.
Why do the rates vary so
much? Each company looks at its own data from losses along with
projections of futures losses. Additionally, the company's marketing
plans are a factor. For example, some companies only wish to insure
people without tickets or accident involvement. Some companies may
offer discounts that are not available from another insurer.
Whatever the reason, the message
is clear. A consumer can save money -- sometimes big money -- just by
checking the rates at a couple of different insurance agencies. Most
agents are more than happy to discuss rates with you since this is an
opportunity for them to earn your business. Remember, insurance
agents are sales people -- they want your business and are generally
willing to do whatever they can to gain you as a client. |
