Daily Dupaco

Friday, January 03, 2014

High premiums don't equal a premium policy

It’s not uncommon for Dupaco Community Credit Union members to save hundreds— sometimes even thousands—in annual premiums by moving their insurance policies to Dupaco Insurance Services.

So, what gives? How can there be such a huge difference in premiums?

When members take advantage of Dupaco’s member-owned insurance agency, they become part of a larger buying group, with access to additional associational discounts.

Another key factor: Insurance rates often come down to the mysterious insurance score. Insurers weigh some 250 factors—everything from your credit score to your accident history—to calculate your insurance score, which helps carriers predict how likely you are to have a future accident or insurance claim.

Each company weighs the factors a little differently. Some might rely heavily on the number of miles you’ve driven, while others are more concerned with who your previous carrier was, says Tim Bemis, assistant manager at Dupaco Insurance Services.

While some factors are out of your control, there are ways to increase your chances of saving money on premiums:

  • Pay your premiums on time.
  • Maintain continuous coverage. Insurers frown upon lapses, and you’ll pay for it through higher rates in the future.
  • Package your policies together to take advantage of additional discounts.
  • Be a good driver. Avoid speeding tickets, other traffic violations and accidents.

Also, don’t get complacent. Review your coverage every year at renewal time, and don’t be afraid to shop around.

“What I hear a lot is, ‘I’ve been with my agent a long time.’ Well, he’s been collecting a lot of premiums for a long time,” Bemis says. “Quotes are free, and they don’t take any time. That 15 minutes you spend could be worth hundreds.”


By Emily Kittle

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