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Managing your Auto Insurance Rates, Should you shop around?Despite falling auto insurance premiums, consumers with similar driving records and patterns are still subject to widely varying rates. These rate spreads are prompting drivers to shop around for auto insurance coverage and the increased volume of calls received at Hallmark Insurance is a reflection of that trend.
When shopping for coverage, it’s imperative to deal with a broker, such as Hallmark, that represents a variety of insurance companies with a broad client base. Why? Because all insurance companies create their rates based on statistics that show where and with whom they are having the highest losses. If you live in a postal code or drive a vehicle that an insurance company associates with costly claims, you will likely pay higher rates. These statistics can vary for each insurance company. At Hallmark, our large portfolio of companies allows us to better match your profile with a company that wants your business and has competitive rates to attract you.
Be aware that shopping around may not produce lower rates. Some drivers are already paying rock bottom prices while others with poor driving records may not find a company willing to give them a discount. Consumers should be wary about switching based on price alone. Reduced rates could mean reduced coverage and/or service. So how can Hallmark help you manage the cost of your auto insurance? Here are some suggestions:
· Consolidating your auto and home insurance can result in a premium savings of up to 10%
· Save 10% to 15% by combining 2 cars onto one policy/insurance company
· Increase your Collision deductible (amount you pay if an accident is your fault) to $1000 from $500 – save 2%
· Increase your Comprehensive deductible to $1000 from $300 (amount you pay in the case of theft, vandalism or glass replacement) – save another 3%
· Changing your deductible on Direct Compensation for Property Damage (amount you pay for repairs to your vehicle if you are not at fault in an accident) from $0 to $1000 can save you more that 7%
· If your car is older, drop Collision and Comprehensive altogether and reduce your rate by 20%
· Delete glass coverage and cut your premium by $50 to $60 – windshield replacement costs are typically less than the $1000 deductible on most policies
· Take public transit to work. Driving to work means higher premiums because there is a correlation between the amount you drive and the chance you will have an accident
· Move to a different community. Smaller towns/cities have less traffic which reduces the chances of you being in an accident
A new, potentially rate saving opportunity, is the Autograph program being offered on a test basis by Aviva Canada. This program gathers data on your driving behaviour through a device connected to the diagnostic port on your steering column. It records risk impacting data such as how much, how fast and when your vehicle is driven. Customers receive a 5% discount for program participation and can be eligible for additional savings of 20% if they consistently drive 120 km/hr or less on the highway and avoid driving during high risk times such as rush hour or the wee hours of the morning.
Call Hallmark and talk to one of our brokers or log onto our website at www.hallmarkins.com to get an online quote. Together we can get you auto insurance that provides the best value for your dollar!
(Adapted from an article originally published in The Globe and Mail on November 11, 2004 by Randy Ray entitled “Insurance: Do you have to shop around?”)
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