Ask The Insurance Expert: “What is a Transfer Discount” OR “What should I plan for when looking for new insurance?”
When looking for new insurance there are many things to think about, one of them is how long it has been since you last changed policies.
“What is a Transfer Discount?”
The longer you have stayed with your last insurer, the larger discount you will get on your new policy.
Commonly called a transfer discount, insurers like to know you are going to stay around for a while and reward those that have been with a previous insurer longer with a better rate. In general once you’ve been with an insurer for a year you not not see any negative impact and need at least three years to get the most benefit. Anything less than a year may not get you what you need.
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It’s always worth looking into a new policy, but bring all the facts, plan ahead, and make sure to talk to an expert.
“What should I plan ahead for?”
This is especially important for parents with kids that will be driving. Let your agent know if you will have new drivers and/or a new vehicle in the family. This can drastically change policy rates.In some cases it can be better to wait and pay more for a few months to get the right coverage for the new driver.
“A family called me a month ago to get a new quote, two adults, two cars, and their house. We put together a quote and they made the switch. They called me this week and said we have to add our son who just turned 16 and another car.” – Anthony Trunnell – Trunnell Insurance Services
The price went up $1000 on the policy they just signed a month ago, they could have saved money by waiting because they would now be penalized by the ‘Transfer Discount”. The best policy for you now may not be the best policy if you need a change in the near future.