4 Things to Consider When Changing Your Auto Policy

Whether you are adding a vehicle or a new driver, updating your address, or considering a new insurance provider entirely, the process of making changes to your auto policy can be intimidating. Read on for things to keep in mind when adjusting your auto policy.

1. Let Your Independent Agent Do the Work for You
As with any important decision, consider talking to a local expert who can help you navigate the decisions involved in switching to a new car insurance company. While paying the lowest possible rate may seem attractive at first glance, any responsible agent will explain that getting the coverage you need should be one of your top priorities.

For example, if you frequently drive with your dog in the backseat, you might ask your agent whether or not your dog is covered in the event you are in an accident. A professional independent agent can recommend an auto insurance policy that automatically covers any potential pet medical bills if you get into an accident. Not all insurance companies include this coverage. This is an example of how protecting what matters most to you is more important than the savings you get from buying insurance online. The foresight to look ahead and anticipate coverage needs is one of the many benefits of working with an independent agent.

2. Ask the Right Questions About Insurance Carriers
It’s important to balance between being price-conscious and making sure your insurance needs are met. To ensure you receive the correct coverage to meet the needs of you and your family, ask these questions when you speak with your local independent agent:

• Is the company well established? Companies that have been around for many generations and have experienced consistent growth are more likely to offer you insurance knowledge and a wide range of options.
• Is the carrier financially stable? Check the A.M. Best ratings to find out. A.M. Best is the industry standard for determining an insurance company’s financial strength and stability. An A++ Superior rating means you never have to be concerned about the financial stability of your insurance provider.
• Are you likely to receive personable and courteous customer service? As part of a service-driven industry, every car insurance company should make responsiveness a key focus, but that’s not always the case. Consider whether the company has received any consumer awards from a respected magazine or an industry research service like J.D. Power. 
• Are claims handled locally? Look for convenience and communication in your quest for the best insurance provider. Local, accessible agents can be invaluable, especially when you’re navigating a claim. When your agent turns your claim over to a claims representative, it is more convenient if that person is local, too.

3. Mind the Policy Gap
Timing is everything as you don’t want to be without coverage between policies. Fees might be involved if you change insurance providers mid-policy term, or discounts may be offered if you shop for a renewal prior to your expiration date, so you’ll want to plan your insurance switchover accordingly.

Failure to avoid a gap in coverage can have serious legal and financial repercussions, especially if a disaster strikes when you’re between insurers. Additionally, a lapse could mean that insurance carriers will charge higher premiums in the future. 

4. Follow Through
Once you’ve switched, make it a point to stay in contact with your local agent. Make sure that your previous policy has been canceled. Avoid billing mistakes and credit bureau issues by obtaining written confirmation from your previous insurer that your policy has been cancelled.

If you are moving to a new state, plan to visit with your insurance provider. Because insurance laws vary by state, you’ll want to complete changes prior to your move.
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With the right insurance carrier watching out for you, making the switch should be a straightforward process. And, Theodore & Associates is always here to help!

1. Customer Service – If you have coverage questions or worse, need to report a claim, would you rather reach an automated recording or an actual person when you call your insurance provider? More and more companies have switched to automated systems, often making it difficult and time consuming to reach the right person. However, at many independent insurance agencies, an actual person will still greet and assist you. In the unfortunate event of a claim, your agent can help you report the claim as well as explain what exactly your policy covers. If you’ve experienced a significant loss, such as water damage to your business, your insurance agent can help you there as well, connecting you to a reputable remediation company right away.

2. Personal Shoppers – Working with an independent insurance agent can be compared to having a personal shopper. Similar to the way in which a real estate agent sorts through properties to help you find your ideal home, an insurance agent reviews many different insurance companies’ rates and coverage options to help you secure policies that best suit your needs. You may believe that this comes at an additional cost to you, but independent agents do not add extra charges to insurance companies’ rates. So you can choose to work with an independent agent, who will handle your coverage needs, assist you with claims reporting and answer any questions you may have, from billing issues to coverage concerns, always advocating on your behalf, at no additional cost to you.

3. Community Involvement – In addition to assisting you, many independent insurance agents also actively help your local community. As local business owners, many insurance agency principals place a strong emphasis on giving back to the community. From sponsoring fundraisers and donating to local charities, to volunteering and serving as board members for non-profit organizations, there are many ways you may witness your local insurance agents giving back to the community, which can make you feel confident about your decision to do business with them.

4. Local Knowledge – It can be rewarding to witness your insurance agent supporting the community, but another local benefit you may not think of is your agent’s knowledge of your community. As local residents, many insurance agents have lived in your area for years and use their knowledge of the community to help you better reduce your risks and protect your assets. For instance, would an insurance company in the South be as familiar with New England’s high water tables in the spring that increase flood risks? If not, this provider may not be as likely to recommend basement water coverage, which is typically not included in a standard policy. Similarly, many independent agents will provide you with seasonal tips to help you reduce your risks, such as how to prevent ice dams and when you should consider raking your roof.

5. Understanding – Independent insurance agents understand that insurance can seem complicated and confusing, especially when you don’t deal with it on a daily basis. For this reason, your insurance agent will work to ensure that you fully understand your coverage, from what is and is not included, to the deductibles and limits you should carry. After you purchase your policies, an independent agent’s work isn’t over – instead, he/she is available year-round to help answer your questions, update your policy and make coverage recommendations.

6. One-Stop Shops – At many independent insurance agencies, you can take care of all your coverage needs at once, limiting the number of different companies you deal with and helping you stay organized. For example, if you own a small business, you can likely secure commercial insurance coverage from the same agency that insures your car and home. If you’re looking for health, life, or dental insurance, whether for your family or business, many insurance agents can help you there as well.

7. Reputation – Reputation plays a crucial role in finding a company you can trust, and many independent agencies take pride in the years, if not decades, they have spent serving their local communities. Not only can a company’s many years of service speak to its well-established reputation in the community, but it can also help you feel confident about its financial stability. Although there are many different ways to obtain insurance, would you rather obtain a quote from a startup Internet-based insurance provider that advertised on television, or call a local agent who your friends, co-workers and neighbors could recommend?

8. Knowledge – When you require legal advice, you contact a lawyer, and when a health issue arises, you visit your doctor, so when you need assistance with your insurance coverage, why not rely on an industry expert? In addition to having many years of experience in the industry, independent insurance agents have also worked with many different insurance companies and are knowledgeable about their individual strengths. Although one insurance company may provide unmatched claims service, another may offer more competitive rates. Based on what’s most important to you, whether it be a company’s service, rates, financial stability or a combination of all three factors, an independent agent will find the best match for you.

9. Saving Money & Time – Insurance companies that promise to drastically reduce your rates in minutes may seem cost-effective at first, but working with an independent agent can save you money and time over the long term. Instead of providing you with an instant rate, independent agents will ask questions and take the time to familiarize themselves with your business to ensure that the coverage they design will adequately protect you and your assets in the event of a claim.
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10. Protection & Peace of Mind – Above all, working with an independent insurance agent will provide you with peace of mind, knowing that when you save money on your insurance, it won’t come at the expense of comprehensive coverage. When it comes to protecting your home, family, business and other invaluable assets, relying on an independent agent you can trust is a great place to start.