A woman and car insurance customer has shared what she does ‘every single time’ to get lower car insurance when she renews.
Navigating the world of car insurance can be tricky, especially when you are trying to get the best coverage possible for as low a price as you can.
A woman on TikTok, pettynpretty95, shared how she goes about locking down a more affordable rate for her car insurance when it comes up for renewal.
Following her advice could work for others, too, as in this ever-more-expensive world, saving even just a few dollars a month can help.
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How the woman gets her lower insurance rates
The TikToker explains that when she purchases car insurance plans for six-month blocks, the auto-renewal quotes catch her eye.
According to her, the auto-renewal quotes always appear to have a price hike.
To prevent this from happening, she opts out of auto-renewal.
What she then says she does is to re-input her personal information, to get an insurance quote as if she were a new customer.
What that leads to is a reduced insurance premium compared to the six-month auto-renewal cost is.
It may change between insurance providers, but she says it almost always happens with her current one.
Inputting all your information again only takes up a few extra minutes.
How much does the trick lower car insurance?
The TikTok user said that her quote then becomes cheaper each month by $100-$150.
She also claimed her friends have done the same, and she said in her video:
“You will save money; I promise.”
This isn’t the first time this kind of trick has emerged for those looking to renew their car insurance.
Some have dubbed this the ‘loyalty penalty‘, and it’s a price hike that can occur with internet service providers, too.
@pettynpretty95 Way to get cheaper monthly payment- go to the website whatever your car insurance is and plug in all the info again: in my case it’s always significantly cheaper then the auto renewal quote. (Obviously make sure you do this before the auto renewal) EDIT you do a new policy. You do not have to accept the policy, if you choose not to accept the policy it doesn’t effect your current policy. *** you have to call your company to cancel your existing policy. But you DONT HAVE TO IF YOU DONT WANT TO. Hope this helps#savemoney #fypシ ♬ original sound – pettynpretty95
Companies likely believe that users, if they are happy with a service, won’t want to re-enter their information.
But loyalty, rather than reward customers, looks like it can actually have the opposite effect instead.
However, it would appear that just a few extra minutes can help save a good chunk of money.
That will then lead to a lower car insurance quote.
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Based in New York, Stephen Freeman is a Senior Editor at Trending Insurance News. Previously he has worked for Forbes and The Huffington Post. Steven is a graduate of Risk Management at the University of New York.