June 7, 2010

• Car Insurance Premiums

  I thought I understood how the cost of car insurance was figured in.  I must have thought wrong.

  When I was 24, and still had an at fault accident on my record I understood why my price might be a bit high.  I was always taught that turning 25, and avoiding accidents however would lower my car insurance premiums.  I sit here today at 26, accident free for 5 years, and yet my premiums with my current insurance agency went up?  I am not sure I understand why and nowhere on the bill does it make it clear how the cost was figured.  Do car insurance companies not realize that they are in a price war right now?  Do they not understand that I can get a quote on any reputable website in 5 minutes?  This is the 1950′s where I had to call a lot of places and take careful notes where it might be more difficult to switch then it’s worth.  No this is 2010 where it’s the opposite.  It’s very easy to switch. 

  Well after the e-mail with the new price I got the mail today and in it was a letter from my insurance company with renewed cards encouraging me to sign back up.  Almost tricking into thinking I had but they are wrong.  I have no intention of paying them inflated prices.

  I went on a competitors site today and found I could save over $600 by switching.  That’s insane.  Of course I would switch.  It’s the exact same coverage for a whole lot cheaper.  The real question is why one company can save $600 over another?  How can they possibly be calculating rates that drastically different?  It makes no sense but you hear in the commercials everyday about how people save money by switching.  I think more transparency by the car insurance companies is needed because this is madness. 

  Have you ever felt ripped off by your insurance company only to find you you were being ripped off?

  • 10:23 pm
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