As a small business it is important to save money on your business expenses. Businesses are required to carry insurance on many aspects of their business life. Car insurance is just one of them.
You see many insurance companies running television advertisements that claim by switching from your company to them you will save money. Most of the time I felt these savings claims were just advertising puffery. At best the savings would come from a change in coverages rather than a true one to one comparison.’
We recently purchased a new car and expected that we would see an increase in our insurance premiums. Bottom line we did. The six month premium went from $852 to $1,578. Ouch! Same full coverage, just a newer car. We spoke with our agent to make sure this was the very best we could do. We asked if the $500 dollar vehicle GPS recovery system we had added would help reduce our rate, we told no with an amused laugh.
Needless to say that increase did send us on a search to compare current insurance rates. We had been with our current provider for years. We will call them company “A”. We had mentioned several times over the years that due to some common interests we should consider another insurance company and we will call them company “N”.
We used the Internet to do our comparison shopping using quotes generated by the companies’ website. When the quote came back from company N we knew it had to be a mistake. The coverage was substantially increased and the premium rate was lowered. The online quote was $780 for six months. That was less than our old rate for the older car. That had to be wrong.
We followed up with a call to an agent for company N. After some back and forth questions he said indeed the quote was wrong. We did qualify for other discounts. The correct price for the increased coverage for the new car was $609 for a six month period.
Since we have never had a claim with company A and of course in the last two months we haven’t had a claim with company N we have no comparison to how a claim would be handled by either. Both are well known national companies, so we expect that experience will be similar.
The savings will be nearly $1,800 per year. Seems like those savings claims are valid at least for us. Compared to the different ads we see, we are about three times more than the save three or four hundred dollars that are bandied about.
Are there areas of your companies’ expenses where you could save money and improve your bottom line?
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