The other day I was having a conversation with a friend who lives in Ann Arbor and she asked me why she might be paying so much on her auto insurance. I do not currently insure her so this was her way of asking if I could help her out. This is by far the most popular question that I hear in my business. It is often a mystery to most on how prices are so different on Ann Arbor car insurance from person to person. With my friends situation she had not been involved in any accident or had any citations over the last 5 years so her driving record is clean. So why would her rate be so high?
As I mentioned to her there are a couple of reasons on why she is paying so much. The first reason is that she could simply be insured with a company that is not competitive. Many companies need to keep increasing their prices on all their customers to offset their claims cost. Some companies are also not run as efficiently as others which means they have higher overhead costs to consider. Another reason may be that her credit may be affecting her rate. Many insurance carriers are not factoring credit into their rating because they believe it provides insight to driving habits. From their research they have noticed a trend that the lower the credit score the more likely a person is to be involved in an accident. The final comment I made to her was to pull out her policy and make sure the coverage is appropriate for her. It is a possibility that her coverage needs tweaks, like her deductible is lower than she needs and it is costing her to have that low deductible.
Part of the reason she came to me with the question is that she knows I am an independent agent and I represent a handful of companies that I can quote her with. Currently her agent works exclusively for the carrier she is insured with so he is unable to do much for her. The beauty of independent agents is that we are not tied to one company but represent a handful. I am sure that I will be able to save my friend money on her Ann Arbor car insurance and if you feel like you are overpaying I am sure you will able too also.
As I mentioned to her there are a couple of reasons on why she is paying so much. The first reason is that she could simply be insured with a company that is not competitive. Many companies need to keep increasing their prices on all their customers to offset their claims cost. Some companies are also not run as efficiently as others which means they have higher overhead costs to consider. Another reason may be that her credit may be affecting her rate. Many insurance carriers are not factoring credit into their rating because they believe it provides insight to driving habits. From their research they have noticed a trend that the lower the credit score the more likely a person is to be involved in an accident. The final comment I made to her was to pull out her policy and make sure the coverage is appropriate for her. It is a possibility that her coverage needs tweaks, like her deductible is lower than she needs and it is costing her to have that low deductible.
Part of the reason she came to me with the question is that she knows I am an independent agent and I represent a handful of companies that I can quote her with. Currently her agent works exclusively for the carrier she is insured with so he is unable to do much for her. The beauty of independent agents is that we are not tied to one company but represent a handful. I am sure that I will be able to save my friend money on her Ann Arbor car insurance and if you feel like you are overpaying I am sure you will able too also.
Source...