This spring I bought a new car and of course my auto insurance rate went up. I really needed a better rate on auto insurance. It is fortunate I had a good insurance agent. Without an insurance agent, I would not have been able to do nearly as much to get a good rate on auto insurance.
Since I had purchased a new car, I needed to add “gap” coverage to my policy. If I didn’t have this coverage added, my insurance would not cover my car for it’s true value. When I drove my new car off of the dealer’s lot, my car’s value immediately decreased. Gap coverage makes up the difference between the new value of the newly purchased car and the decreased value of the car after it is driven from the dealer’s lot. This is needed, especially if there is a loan on the car as I have. If the car was involved in an accident and was totaled, with Gap coverage there is a better chance that the insurance would pay enough to pay off the car loan.
First, I requested my insurance agent calculate premium quotes from different companies with comparable coverages and limits. This did not result in a better rate on auto insurance. My coverage was already in the best company for my needs. I had my homeowners and automobile coverage in the same company, so I was getting a sizable credit for having multiple policies in one insurance company, this resulted in a better rate on auto insurance and homeowners insurance.
Next I reviewed the coverages, limits and deductible amounts with my insurance agent. I decided from the premium comparisons she made available to me that I would increase the deductibles on Comprehensive and Collision. The deductible is the beginning amount of the loss. The insurance company will pay after the deductible is met (and paid out of my pocket). This helped me get a better rate on my auto insurance. Comprehensive coverage is for theft of the vehicle, vandalism or if I would hit an animal and it damages my car, to give just a few examples. Collision covers my car if I would run into something, like a pole, and damage my car. This resulted in a good rate on auto insurance.
I remembered I had recently paid off a credit card, which improved my credit score. Credit score directly affects insurance rates on most personal policies. My agent ran my credit score again, the premium on my auto insurance and my homeowners both decreased sizably. This really helped me get a better rate on my auto insurance and my homeowners as well!
My insurance agent suggested she could try putting my auto coverage in my current company’s new plan to get a good rate on auto insurance. I would have an annual policy instead of a six-month policy as I currently had. She tried that, and the premium on my auto insurance was further decreased, resulting in a better rate on auto insurance.
I was confident that everything that could be done was done, and completed in a professional manner. I got a good rate on auto insurance and I was happy. It is good to know that everything was done for my benefit. Not only did I have a good rate on auto insurance, I know I am adequately covered in case I need to use my insurance after a loss had occurred. Good deal!