Romanov Report 20 - Sept 29, 2005

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Fear of Changing Insurance Companies

What If I Have An Accident?: If you moved to another insurance company for a better rate and then have an accident, don't worry.

Insurance companies have to file their conditions for non-renewal or cancellation with the government. For example, if their rule is "3 tickets and 1 at-fault accident", whether you have been with an insurance company 20 years or 20 minutes, if you fall into that category you're out.

One tip when you're switching to a new insurance company is to ask if they have "Claims Protection". These help reduce or eliminate rate

increases after your first accident, so buy the coverage, if you qualify. And ask your broker what the company's cancellation rules are when it comes to multiple tickets

or accidents.

Quoted One Price, Billed Another: The only way that your rate should change after you've been quoted is if you had accidents or tickets that were not disclosed.

If you aren't sure of your record, you can:

On Renewal, Will My Rate Skyrocket? Unlikely. Most increases are because the broker no longer deals with the insurance company they placed you with the previous year, and they have probably placed you with another insurance company with higher rates. This being the case, all you need to do is call the insurance company for the name of another broker that they deal with and get that broker to renew your insurance with them.

I Have Renewal Discounts: These renewal discounts are meaningless, if another insurance company has a better rate for you. For example, if you have a home and auto discount, it's the bottom line that counts. The new insurance company, with a better rate, will have home and auto discounts too, which means an even better rate for you.

I'm A "Nin-Star Driver": So what. You might be a nine-star driver with one company paying a lot, or a six-star driver with another company paying a little. The bottom line is the key.

I've Been With My Insurance Company For A Long Time: "Loyalty" discounts are easily overcome with a better rate from a new insurance company. And if the reason you are not changing is because your parents have dealt with this company forever, then it's time to cut the cord.

The insurance company with the best rates for your parents does not necessarily have the best rate for you. Check out the best insurance company for you by clicking on

My Broker Says I Have The Best Rate: You may have the best rate available to the broker, BUT your broker is limited by the number of insurance companies they represent. They can't quote you from companies they don't represent, even if a lower rate is out there for you.

Other brokers may have other insurance companies with better rates for you. Find our for sure by going to