What do you say to the car insurance company you’ve been with for the past 10 years when they won’t lower their rates? Don’t let the door hit you on the way out! That’s what I had to tell my insurance provider, AAA, when they refused to negotiate a better rate for our household. Even though we gave them the opportunity to retain our business, we ultimately decided to shop around and found better rates for the same coverage.
Here’s what happened.
Every now and then, we like to focus on reducing one of our household expenses. This month, it was car insurance. Our auto coverage had been increasing every six months for the past two years. How much was my latest renewal notice? Way too much! Given that we’ve been driving the same two used cars (the oldest being almost 9 years old) and haven’t had any accidents or traffic violations, our rates should have been decreasing.
So, I decided it was time to look into other options.
I love the Internet. In just a few minutes, I had quotes from several reputable car insurance providers. With these quotes and new policy offers in hand, I had the leverage I needed. In the past, I would gather three quotes from companies like Progressive, Geico, and another well-known brand, then send them to my agent. My agent would usually respond with some kind of discount, enough to show they wanted to keep my business.
But last year, that changed. The only response I got was “that’s our price – take it or leave it.” This time was no different.
Well, I did warn them. In any negotiation, you have to be prepared to make a hard change if things don’t go your way. This wasn’t a bluff.
So, when AAA refused to lower our rates, I decided it was time to switch. It was a tough decision after being with them for 10 years and enjoying some AAA discounts while shopping. However, those discounts weren’t enough to justify the higher cost.
We ended up going with Progressive. They offered a policy for $558 for six months if paid upfront, which breaks down to about $93 per month. That’s almost 38% less than what AAA was charging for the same coverage.
This experience reinforced the importance of shopping around for better insurance rates. With instant Internet quotes and auto insurance becoming more of a commodity, it’s crucial to ensure you’re getting the best price. Name brands don’t hold much weight anymore. As long as I’m with a reputable company that will honor my claims and be there when needed, I’ll always look for the best deal possible.
