Page 11 - AAA Every Day – AAA Hudson Valley – October/November 2020

Shopping for new car insurance or coming upon the time to renew your existing policy? Insurance today uses so many factors in determining your rate, it can be tough to wrap your head around it all. In fact, you might be surprised about which factors can significantly influence the
auto rates you might be receiving from different carriers. Here is a comprehensive breakdown of some things to pay attention to:
Credit – Most carriers use what is called an “insurance score.” This score does not adversely affect your credit, though it does play a factor in the final rate you are given for car insurance.
Current Liability Limits – If your
current liability limits are less than $100,000/$300,000, consider raising
them to that limit before looking for
new insurance. Carriers look at incoming liability limits; the higher your current liability limits are with some carriers, the more likely you will get a better rate. The idea behind this is that customers with higher liability limits are more likely to be safe drivers and more actively monitor their coverage to keep claims minimal.
Loyalty – The length of time you have been with your current carrier will impact the rate you are
Shutterstock: Orathai Mayoeh
given. If an insurance carrier sees that you have been with your current carrier 3 years or more, the rate you receive may be better than someone who has been with their current carrier less than a year. Longevity with your carrier still means something
Eman Badr is a Certified Professional Insurance Agent and Manager of the AAA Hudson Valley Insurance Agency.
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significant.
Start Date – Be proactive and do your shopping ahead of time. This should
be no later one week before needing coverage. The idea here is that some insurance carriers do not give a better rate to those who are last-minute shoppers and need coverage right away.
Payment Options – Though not everyone can afford it, some insurance carriers give a sizeable discount for paying the policy in full. The next best option is auto-pay, such as Electronic Funds Transfer. Most carriers have a discounted rate utilizing EFT, reducing
the number of late payments on monthly bills.
Overall, it is best to familiarize yourself with your current coverage so you can compare it with other options. If you are thinking about removing items on your policy to lower your rates, consider instead educating yourself on how to get the best coverage for your needs. To speak with a AAA Hudson Valley Insurance Agent, call 518-649-1717 or visit AAA.com/Insurance.
OCTOBER/NOVEMBER 2020 I 11
CAR CARE HANDBOOK
Factors in Your
Insurance Costs