Smooth Sailing... eh-hem Driving

Just a short post on how to be zenful with your car insurance company.  A short twitter conversation today inspired me to remind/notify everybody, just how important these two things are.

One, pay your bill on time/early and two, ALWAYS maintain coverage.

Because car insurance is a large financial contract, even the smallest policy is a $20,000 liability for an insurance company, it is unlike any other bill/product you have.  If you're late on the cable bill your cable company isn't really out any large or meaningful expense if they continue to provide you service for a week or month or two.  But, if you're not up to speed on your insurance, and you have an accident, the insurance company is out tens if not hundreds of thousands of dollars.  This is why most companies do not provide any or very little lieniency with their billing.  Paying the bill on time allows the insurance company to provide you with smooth, uninterupted service.  So if you have to make a change to the policy, it can be done quickly and efficiently as long as there is proper equity on the policy.

Maintaining coverage all the time will give you the same benefits of having your bill paid on time.  The biggest benefit to the consumer comes in the form of a rating factor.  Like it or not, insurance companies use your insurance history as a rating factor.  Customers who maintain insurance all the time are less expensive to administer and service, and are less likely to file claims.  If you're thinking about switching companies for any reason, be sure to secure new coverage prior to canceling your current coverage.  Using an independent insurance agency is a fast and easy way to shop for insurance.  Independent agents represent numerous companies and can give you a quick snapshot of your insurance market.

If you want to discuss rating factors, or any insurance topic, leave a comment or contact me anytime.