Ensure You Get The Discounts

By Author: Marcus Stalder
Total Articles: 491
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It's impossible not to notice the official numbers from government about the state of the economy are all supposed to be showing improvement. The number of the unemployed has fallen again, except that's just the number of people claiming benefit. The fact is there are still no jobs and people are giving up. Retail spending is supposed to be holding up, but we all have to eat and put clothes on our backs. None of these statistics really tell the truth about how hard it is to make the family budget cover all the expenses. At times like this, it's all the more important we find every dollar of saving. Since there are mandates for liability insurance, that means finding all the discounts applying to us.

This is like a declaration of war. During all the good times when the credit was flowing as in the land of milk and honey, we would pay the increasing premium rates, no questions asked. Insurance companies got used to idea we would just keep on paying. Well now times are tough, they are finding resistance to the rate increases. Even in states where the Insurance Commissioner usually nods through all rises, the question of ...
... how much we should be paying is becoming more political. Insurers are having to adjust to the new realities. They cannot assume we will blindly renew our policies. They must allow us to pay less or we will vote with our feet and change cover to competing insurers.

Except it's not that simple. For the last sixty years, there's been only limited competition between insurers. In its wisdom, the federal lawmakers decided the insurance industry should be excluded from the usual anti-trust provisions. There are no federal insurance companies. It's the responsibility of each state to regulate insurers within their borders. No company can sell policies across state lines. So, in states where there are only a few insurers, you'll find premium rates are remarkably similar. The insurers divide up the cake as it suits them.

Of course, there are loyalty bonuses to encourage us to renew and welcome bonuses to encourage us to switch between insurers. But a lot of this is smoke and mirrors. Welcome bonuses that persuade you to sign up can disappear in the next rate increases. What looks a good loyalty bonus can be paid for in lower discounts for other features. The only way you get the best deal is to read the policies to find out exactly what the terms are and how much it will cost. Then carefully work your way through the list of discounts to ensure you have made all the claims. Remember the default rule. If you don't ask, you don't get.

Auto insurance quotes are supposed to be the starting point for negotiations. They are the insurers' first offers. If you run the free search a second and third time, changing the annual mileage or the deductible, you can find out how much you can save. Be systematic. If anything is unclear, check the auto insurance quotes. There are usually contact details where you can ask follow-up questions. Before you sign up for a policy, companies are keen to help and advise. Use this chance to ask about discounts.