My current auto insurance is through a local agent for a big national company. Its always seemed a bit high to me, but I’d never really questioned it or shopped around.
I recently got a quote from an online provider, and it was almost 50% cheaper.
Now, to be honest I’d be glad to pay a premium to go through the local guy, and to know that I have a physical office I can go to when I need to, but an extra $300 on a 6 month policy is a bit more than I’d be willing to spend.
My question is would I have anything to gain by bringing in the online quote to my agent and seeing if he can get closer to it? Would I look bad to do this, or is it common to ask for a better deal? Could this guy even come down in price if he wanted to, or are prices pretty much set in stone?
The do have some options.
The guy I had offered me some new products when I balked at renewing.
They may be missing something you don’t want, and then you win.
In my case I gave up only theft of contents insurance, which I had on a different kind of policy anyway.
In short, no. In most states insurers can only offer you rates that they have on file with the state’s insurance department. To give you a discount would violate anti-rebating or illegal inducement laws. An agent may be able to find a better rate or discount that has been filed but they can’t just price match some other company’s rate.
I am an auto insurance agent, but not YOUR insurance agent, so take this FWIW, but there may be something they can do for you to bring down your cost. Lots of insurance companies offer discounts for different things-occupation, defensive driving, marital status, etc. Sometimes things change over time and you don’t know to alert the insurance company. Sometimes the person who set up your policy did a poor job of making sure you had all possible discounts. They should review your policy and make sure all discounts are being applied.
Also sometimes when you get a quote the company you are talking to doesn’t have all the information needed and the actual cost of your insurance will be higher than your quote. If they didn’t run a motor vehicle report that can have a big impact on your cost of insurance.
Finally, make sure you are comparing apples to apples. Sure, the new company is offering $300 less every six months, but does your current policy offer towing and labor that isn’t offered by the new policy? Are your coverages and deductables going to be the same? Do they offer temporary waivers for excluded drivers? Do they offer accident or ticket forgiveness?
It often doesn’t pay to stay with the same company over long periods of time but if you have a good history with them and they have been quick and easy to deal with in a claim you have to weight the value of the devil you know vs the devil you don’t.
I’d be cautious with a random online insurance vendor. Make sure it’s a name you trust before doing anything. I personally prefer not to work through an agent, but that route isn’t for everyone.
You do understand that your agent only completes the application for the policy? He or she has no influence or control over payment on claims. Their only value after the policy is sold is getting you the right extension off 1-800-EAT-SHIT to dicker with on your claim.
Not true. It is common for agents to facilitate claims for their customers. A lot of claims can be paid by the agent directly, who then submits the paperwork to the claims department after you walk out with your check. An agent is in a position to know you personally and to keep track of your life as your needs change–and alert you to different solutions that don’t always culminate is additional expense to the customer. In essence, the agent does the insurance-thinking for you, much like a lawyer does the legal thinking on your behalf. It makes a lot of sense to know someone who has intimate knowledge of how insurance works, what kinds of claims really happen and with what kind of frequency, and who also knows your personal situation.