CHASE THE DOLLAR AND GET A SPEEDING TICKET

I was listening to the radio on the way into work and heard three ads from three different auto insurance companies, each saying they can save you the most money while giving you the finest coverage. My thoughts aren’t that they are wrong or misleading but that constantly chasing those savings dollars can cost you in the end.

SOME POINTS THAT CAN COST THE CONSTANT CHASERS:

There are certain points insurance companies look at to give potential new policyholders the best rate. These “points” can be different with each company but they are still there. Among them the company looks to make sure there is an unbroken line in coverage. Sometimes when you move from one company to another a gap can occur. Any kind of a gap, for any reason can cost the policyholder their most preferred rate.

Constant jumping around could cost the chaser in longevity credits. A number of companies give substantial credits for those policyholders who renew with them: the more renewals, the higher the credit. If the Chaser is constantly moving from one company to the next, they will never enjoy the lower cost these credits afford.

When the Chaser is speaking with different companies, they might not be consistent with the levels of coverage they ask to be quoted. Their current coverage might be at a high level, but they might not be aware and have the company representative quote them at a level lower than what they currently have. This would save them money, but the inadequate coverage would potentially cost them at time of claim.

It is at time of claim that you want the company with whom you are insured to give their full support. If the Chaser has just signed on with a new company and they quickly have a claim, the company will help them up to the limits of the policy, but potentially no more. They could even be cancelled at the next renewal. A policyholder with 10 years experience with a company will be treated differently than one who jumps at every renewal. The better the relationship with a company, the more lenient they will be at time of claim and after.

Figure out what is important to you and what you want from your insurance company. Focusing on dollar rather than product and service can cost you more in the end.

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