You'll save some premium dollars with a multi-vehicle discount. Yes, this is true. But while this is true, you might actually have been fooled to pay a lot more even with the "discount." Let's clear this up a bit...
A product that has a display price of $1,000 will go for $900 only if they offered you a 10% discount. But what if another merchant has a display price of $800? In that case, you'd have lost $100 even though they do NOT offer you a discount.
The fact that an insurer gives competitive rates for an "A" car does NOT imply it will also have great rates for a "B" car. Several things come to play here...
Every insurer use certain factors to ensure that the rates they give you help them give insurance coverage, take care of their overheads while making them handsome profit. Ranking high among the many factors used in the underwriting process is a company's claims history. A simple definition for this is: Details of claims made within a particular period.
A particular company might have had a good year with policyholders who drive "A" cars. However, for that same company, claims by "B" car owners was way higher than projected. You'll see that they would be able to maintain their rates for one car while they won't for the other.
This means that your rate for an additional vehicle might be a lot more than what you would get with another insurer who did NOT have such an unfavorable experience with "B" owners. Yes, a multi-vehicle discount is something you should grab but only if you've made sure you'll NOT save more with another insurer.
Here is something you must NOT forget: A discount means they'll take less than they used to. It does NOT suggest that what they'll take from you is less than what others will.
And, if you count in each of the many factors, you'll see why you need to shop before you buy: Each factor gets a different relevancy score from different insurers. The end result is: Similar policies will have a big difference in rates.
So if you want to insure another car, do extensive comparison shopping. This will help you ensure that you'll really pay less with a multi-vehicle discount from your present insurer. - 15275
A product that has a display price of $1,000 will go for $900 only if they offered you a 10% discount. But what if another merchant has a display price of $800? In that case, you'd have lost $100 even though they do NOT offer you a discount.
The fact that an insurer gives competitive rates for an "A" car does NOT imply it will also have great rates for a "B" car. Several things come to play here...
Every insurer use certain factors to ensure that the rates they give you help them give insurance coverage, take care of their overheads while making them handsome profit. Ranking high among the many factors used in the underwriting process is a company's claims history. A simple definition for this is: Details of claims made within a particular period.
A particular company might have had a good year with policyholders who drive "A" cars. However, for that same company, claims by "B" car owners was way higher than projected. You'll see that they would be able to maintain their rates for one car while they won't for the other.
This means that your rate for an additional vehicle might be a lot more than what you would get with another insurer who did NOT have such an unfavorable experience with "B" owners. Yes, a multi-vehicle discount is something you should grab but only if you've made sure you'll NOT save more with another insurer.
Here is something you must NOT forget: A discount means they'll take less than they used to. It does NOT suggest that what they'll take from you is less than what others will.
And, if you count in each of the many factors, you'll see why you need to shop before you buy: Each factor gets a different relevancy score from different insurers. The end result is: Similar policies will have a big difference in rates.
So if you want to insure another car, do extensive comparison shopping. This will help you ensure that you'll really pay less with a multi-vehicle discount from your present insurer. - 15275
About the Author:
Get more tips here: Really Cheap Auto Insurance and Cheap California Auto Insurance. Chimezirim Odimba helps you pay less for more.
