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Compare and Shop for Insurance Rates
Whether you are purchasing a new or used vehicle, invest the time to compare and shop for insurance rates.
Did you know that the difference between your lowest quoted insurance rates and the highest rates could exceed 400%?
As new car dealers, it is important to us that you do not get any ?surprises? when you look into insurance rates for your new vehicle. All too often a vehicle purchase transaction has been completed, and the consumer no sooner discovers that the insurance they must pay on their new vehicle, is well beyond what they expected to pay, or what they can even afford. The outcome? Best case scenario ? disappointment; Worst case scenario ? cancellation of the purchase.
Vehicle Insurance is mandatory in Canada. If you have financed or leased your vehicle, you must provide proof of insurance coverage before taking delivery of your vehicle. This coverage must include liability, collision and comprehensive.
Make certain that your insurance payments are made on time. Should a payment be missed, your insurance company is within its legal rights to notify you by registered mail of a policy termination, and, if you have not rectified your account within 15 days of this written notice, they are under no obligation to re-instate your policy. Even if they do, they may not necessarily offer you the same payment previously paid prior to cancellation.
No single insurance company has the best rates for everyone. It pays to shop around. ?Consumer?s Guide to Insurance? is a company owned by Lee Romanov, that instantly compares rates from 30 insurance companies, and provides the lowest rate for consumers according to their personal information, and specific driving record. This service is available at www.insurancehotline.com. As an example, we discovered one insurance company in Mississauga, which offered the lowest rates for married couples, also offered the highest rates for male teens, driving in Toronto.
Different insurance companies offer different rates on the same vehicle. The company with the lowest rate for one make and model, is not necessarily the same company that offers the lowest rate on another make. Therefore, it is critical to comparison shop for your insurance rates. Insurance rates will vary based upon age, gender, marital status, driving record, location of business, etc. Always get your quote in writing.
Another misconception is that insurance rates are based on the cost of your vehicle. If a 35-year old male purchased a 2003 vehicle, with an approximate value of $15,000, the lowest insurance rate we were quoted was $1,242 per year. However, if the same 35-year old purchased a 2003 vehicle, valued at approximately $60,000, the lowest insurance rate quoted was $1,562. There was a mere increase of only $320 for insurance on a vehicle that cost $45,000 more.
Insurance rates that we were quoted for similarly priced vehicles, varied significantly. We discovered the insurance costs for each vehicle were approximately the same when we found the insurance company with the lowest rate. However, we did discover that on the same vehicle, quotes varied as much as $3000.00.
Many drivers who have experienced skyrocketing insurance rates have simply paid the increases instead of shopping around for another insurance company, one that may offer them lower rates.
Do not rely entirely on a single broker who may have contracts with a limited number of insurance companies, as those specific companies may not offer you the lowest rate for your insurance coverage.
The government has recently initiated a $1.3 billion insurance savings program, which insurers are required to pass along to consumers. Insurance companies began filing for rate changes on September 30, 2003. Many consumers may not even be aware of these decreases until their policy renewal date. This means that many individuals could continue to overpay for insurance.
To combat this problem, Romanov has recently started a ?Rate Alert? service at >www.insurancehotline.com, which e-mails consumers the lowest insurance rate found, as new rates become available. Consumers can have Rate Alert automatically check the lowest rates for them on a weekly, bi-weekly, or monthly basis.
Not only do the rates vary significantly between insurance companies, but they can also vary significantly within the same company over time. The rate that you receive from one company today, may not be the rate that you receive from them tomorrow.
Until next week, remember - YOU are in the driver's seat.
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