SERIES: YOU Answer The Question – Part 4
Welcome to the latest series – YOU Answer The Question!
One thing that I love about traveling and teaching about finances is that I learn so much from the people I meet!
So here is how this series works. I will share a question that has been sent in to me, and YOU Answer The Question!
QUESTION: We have had our car insurance with the same company for twenty years. We know we are paying too much so we are obtaining new car insurance quotes. Once I get the new quotes, should I contact my current insurer and ask for a counter-offer? I am hesitant because we have been with them for so long.
Do you have a question of your own? Ask me HERE!
Yes – ask for the counter-offer. Then go with the best rate. They are not your family, they are a business. And even if they are your family, they are still a business. Businesses are there to make money, not look out for your welfare. Even though the commercials claim that they have your best interest at heart, they don’t. They would not think twice about dropping you, don’t think twice about dropping them!
Yes, I don’t think it would hurt to ask. I’d been with the same company since I started driving (20 years ago!) and felt really strange at first even thinking of changing. But, once we found out how much money we would save it was easy 🙂 I was a bit nervous when I called to cancel with the former company, but they must be used to that as it was no big deal. Said they were sorry, understood I was switching to save a lot of money and told me I was welcome to come back anytime in the future. I did not think to ask for a counter offer, but on the slim chance they would have met or beaten the new offer it would have saved us some paperwork, time, etc. So yes, I say go for it and ask for that counter offer! You never know…
I agree with Geoffrey & Caryn’s comments. Like Caryn, I too have had the same insurance company for about 20 years. However every few years I do shop around. Not the funnest thing to do in the world, because you have to make sure you are absolutely comparing apples to apples. Only 1 company has ever come close to meeting my current carrier & that was only because we had a life insurance policy with them. I did not switch because I knew we were dropping that policy & the amount they beat our current carrier by was so minimal. I am in the process though of trying to put away money for my deductible so that I can up it. That is a great way to save money if you can.
Also, is this a carrier or an agent? Because if it’s an agent give him a chance to find you the best deal. Also check into putting all your insurance together; i.e. home owners or renters, car, life & any other personal you may have. You may be able to find a good deal that way.
Joe,
As a result of reading the complimentary copy of “I Was Broke But Now I’m Not: from the Mutual Fund Game I won, my wife and I called around for quotes on auto insurance. We have a local agent who just opened a State Farm Branch within walking distance. We received a quote for 10 minutes worth of work $100.00 lower than our current premium. Today, I called Geico and received a quote $250.00 lower. I called our current provider and asked for lower quotes from other companies they represent. Our current provider is unable to match so we are going to switch to Geico.
As a result, our monthly insurance costs will decrease by $33.00 per month. Thanks for the advice through your book. It was hard though, I had to tell my wife when she faxed our current premium statement to wite out the price. She said but why? I said trust me, Joe says you should just ask them for a quote based upon what you want (coverage terms, deductible, etc.) not based upon what you pay currently! Ten minutes worth of work netted us an additional $250.00 per year in after-tax income!
In response to the question, I would definitely give your current company the option to match your cheaper offer. If they cannot, move on and give your business to the new company.