Transcription Slide 1: Hello, I’m Dan Lyles with Lyles Insurance. In this video, we’re going to go over how auto insurance companies differ in how they calculate auto insurance rates. Slide 2: I’m sure you already know that auto insurance companies calculate rates differently from one another. But what will probably surprise you is how much differently they calculate rates from one another. In this video, we’re going to go over the five biggest differences. Slide 3: So number 1: Your credit score. 92% of all companies use credit at least to some degree in calculating your rates. But to what degree is where the big difference lies. On one extreme some companies won’t sell you auto insurance at all if you have bad credit. Others will but they will charge a high premium for it. On the other extreme, you’ve got companies that go very easy on credit. So if you have a good credit rating, that will probably help you get a low rate. But if you don’t have a good credit rating, don’t sweat it because there are companies that take it very easy on drivers with bad credit. You just need to shop around and look for them. *** And one quick note, as of this coming July 2, 2020, for those of you who live in the state of Michigan, credit will no longer be a rating factor in calculating your rates. But this will still apply to my customers in Ohio, Indiana, Pennsylvania, Virginia and West Virginia. Slide 4: Number 2 is driving record. There are two ways in which companies factor in driving records differently. The first part deals with how far they go back. Some companies go back only three years, while others go back five years, and you also have companies that do somewhere in between. And the second part, how each company treats an accident or violation varies greatly as far as each different type of violation. For example, companies decide which violations are more severe than others, and they charge that premium accordingly. Slide 5: Number 3: Age. While prices are usually expensive for drivers who are 25 and under, and older drivers who are over 75, there are companies that go easy on those age groups. So if that applies to you, it’s extra important that you check with as many companies as you can in order to find your lowest rate. Slide 6: Number 4 is prior auto insurance coverage. There are a few companies that will not sell you insurance if you haven’t had liability coverage for the past six months, but most companies will. They just won’t offer you a discount like some companies do. And there are some companies that offer big discounts for having prior coverage. Now to get this discount, you’ve had to have liability coverage at least for six months. And you can get bigger discounts if you’ve had it longer or if you have higher levels of liability coverage. And keep in mind, it doesn’t have to be with the same company. It just has to be consistent with no lapse in between. Slide 7: Number 5: Liability only versus liability plus comprehensive and collision coverage. This is what most people refer to as having “full coverage”, when you have comprehensive and collision coverage added onto your policy. I don’t like to use the term “full coverage” because it is misleading. But whenever you’re increasing or decreasing your level of coverage, it’s important that you know how much differently companies look at liability only policies versus liability plus comp and collision. And some go easy on liability, not so much with comprehensive and collision and vice versa. So any time that you change your level of coverage whether it’s increasing or decreasing, now’s a great time to check prices with other companies, or at least by your next renewal date. Slide 8: So I’m sure you’ve noticed a common theme in the last several slides. Companies weigh differently the major factors that go into calculating your auto insurance premium. And so the key point to take away here is that it’s very important to shop around with other companies. It’s recommended that you do so at least once every two years, and I would add in there also after any time that you make a major change to your policy. And the most efficient way to shop around for auto insurance is to go through an independent agent like myself. That way, you only have to enter your quote information once, and you get prices from multiple companies. Slide 9: For those of you who live in Ohio, Indiana, Michigan, Pennsylvania, Virginia or West Virginia, if you would like for me to personally run you a quote, I’ll be very happy to do so. I’ve posted a page from my website where you can get an online quote, and I will get back to you with prices. Or if you would rather just get a quote over the phone, I’ve also posted my phone number. Thank you for watching and have a great day! Related Blog Articles: Video: Should I add/increase deer coverage on my auto insurance Video: The best way to buy auto insurance online
0 Comments
Leave a Reply. |
Author
Dan Lyles is an Independent Insurance Agent serving Ohio, Indiana, Michigan, Pennsylvania, Virginia and West Virginia.. Archives
March 2021
Categories
All
|