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Is your car insurance policy annual or semi annual?
Why have you chosen one or the other?
Mine is every six months. It's been that way for years.
I feel that gives me more flexibility if I'd ever want to switch. I don't like the idea of paying for a year ahead. So if I want to change, then they own me money back and I'm at their mercy regarding that.
The insurance company says on a yearly basis it would be the same premium -- that whether 6 months or a year -- the cost is the same. They say any increase at six month renewal, and any at the six months after that -- would be the same amount at the yearly renewal stage.
Have you found that to be the case?
Adjuster Jack any expertise on this? Thanks. I love to learn from for experience. (And I'm not just flattering you. Your knowledge really does help many, many people.)
The insurance company says on a yearly basis it would be the same premium -- that whether 6 months or a year -- the cost is the same. They say any increase at six month renewal, and any at the six months after that -- would be the same amount at the yearly renewal stage.
That's baloney. Sounds like agent hype.
There are pros and cons to each. A 6 month policy gives an insurance company more frequent opportunity to raise rates.
A 1 year policy makes it a bit difficult to change midterm unless you find a low enough price to offset the cancellation penalty. It's called "short rate." It's a way of computing refunds that results in the insurance company keeping about 10% of the refund. It's typically used when an insured requests cancellation.
I have had one year policies and 6 month policies. Either way locks in the rates for that duration and I deal with rate increases as they come.
I was with Pekin on annual policies for 8 years. Pekin was so competitive that nobody in AZ could touch them. Until last August when my premium went from $1200 per year to $1800 per year. I got quotes from numerous companies and all but Progressive were well over $1800 per year with annual policies or 6 month policies (annualized). Progressive came in at $624 for 6 months. Close enough to my previous annual policy.
My Feb renewal with Progressive is $745. Even though that is annoying the total for a year ($624 + $745 = $1569) is still quite a bit less than the $1800 that Pekin charged for a year or than anybody else quoted in the last couple of weeks.
I got quotes from a dozen companies and all were over $2000 per year, including annualized 6 month policies.
We'll see what happens in august when my auto renewal comes up.
I always assume that rates go up, though some companies are more competitive than others.
I go with the policy that gives me the best price now, whether it's 6 months or a year, then I put it to bed until renewal when I start getting quotes again.
I also pay in full to avoid installment charges. They drive the premium up quite a bit.
I have auto, home, and umbrella with Travelers. The last two times I tried to price shop -- six years ago with Liberty Mutual and two years ago with NJM -- my head nearly exploded from getting rates on all three policies. Most of it was from having the phone rep run whether it better to have the auto primary and get discounts on the other two.....or let them quote the homeowners first and then see what the auto would cost.....and they wanted different coverage levels on the auto to get the umbrella......THAT.....
AND..... they never seemed to quote dollar for dollar matching coverage for what I have now. The coverage levels always were higher or lower than what I had. Honest to God we were on the phone at least 20 mins. I think it was a 1/2 hour but I don't want to exaggerate.
From what I gathered, it would have been about $40 a month less -- I think. Was it a better deal? I don't know because the coverages weren't the same.
By the end of it (to myself) I was like, you know what -- for 40 dollars a month I'm not moving all my policies, dealing with the timing of all that, paying for the new policies before I get refunds back from the company I was with.....leaving a company I really was happy with....
Travelers won on those days because I was mentally spent.
At least internet and phone companies offer you one- or two-year special deals to get your business. Insurance companies can't even quote you for the coverages you want. At least that's been my experience. So Lib Mutual and NJM lost out. Put, I stay.
When I am dealing with a local agent I provide copies of my declarations pages and insist that quotes be for the same coverages. Once I get the initial quotes I can get them requoted with the multi policy discount and make any other necessary adjustments.
When I got quotes online the companies usually quoted 3 levels - basic, good, better and none of them conformed to my coverage but allowed me to edit them and get them recalculated.
$40 per month is $480 per year. For that kind of money I would have spent more time on it.
My Feb renewal with Progressive is $745. Even though that is annoying the total for a year ($624 + $745 = $1569) is still quite a bit less than the $1800 that Pekin charged for a year or than anybody else quoted in the last couple of weeks.
$624 + $745 = $1,369 unless you put a wrong amount in
When I am dealing with a local agent I provide copies of my declarations pages and insist that quotes be for the same coverages. Once I get the initial quotes I can get them requoted with the multi policy discount and make any other necessary adjustments.
When I got quotes online the companies usually quoted 3 levels - basic, good, better and none of them conformed to my coverage but allowed me to edit them and get them recalculated.
$40 per month is $480 per year. For that kind of money I would have spent more time on it.
This right here.
While it is different to some degree, this is how I deal with my business insurance every year. About 60 days before renewal I’ll call my agent and a couple others, send my certificates and Dec pages and say “quote the package and email it to me” the last time, that agent got my home and autos as well because she took the time to dig in and find another $500.
Independent agent, all the way. Many of them have become really good about online quote portals.
$624 + $745 = $1,369 unless you put a wrong amount in
Typo. Thanks. Makes me feel like somebody just slipped 200 bucks into my pocket.
Quote:
Originally Posted by Lz_2022
This right here.
While it is different to some degree, this is how I deal with my business insurance every year. About 60 days before renewal I’ll call my agent and a couple others, send my certificates and Dec pages and say “quote the package and email it to me” the last time, that agent got my home and autos as well because she took the time to dig in and find another $500.
Independent agent, all the way. Many of them have become really good about online quote portals.
For commercial insurance, an experienced independent agent absolutely.
His expertise can save you money in more ways than just your insurance premium.
Location: East of Seattle since 1992, 615' Elevation, Zone 8b - originally from SF Bay Area
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We have always been on the 6 months, since about 1974. While it does give more opportunities for a rate increase, it also gives more opportunities for rate decreases. Since early 2020 two of ours fell below the 7,500 annual miles threshold, since working from home, and the rates dropped. For us it's convenient, only having to pay and replace cards twice a year and with a manageable amount to pay without using a credit card or savings.
I buy annual policies only because if I like their rate, I want to lock them in as long as possible. I use Independent Agents to shop around for me and i look online. For about $100 less I will switch. Less then $100 not worth the aggravation.
I use credit cards to pay my premiums in full. The cards pay cash rewards. I pay off the card as soon as I get the bill and don't run a balance. I make a few hundred a year. Not a lot but it amuses me that the banks are paying me to use their money.
Doesn't work if you run a balance and pay those outrageous interest rates.
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