The insurance industry in Massachusetts is pretty competitive. As such, many customers will rate shop and look for the lowest possible premiums. Some insurance companies quote unusually low rates to get your business, only to increase them shortly thereafter. Massachusetts consumers should beware of insurance companies that lure customers with low introductory rates. Here are some helpful tidbits of information to help you understand how it all works.
Policy Periods and Rate Locks
When you receive an insurance quote from any company, it applies to a specific period of time. You will commonly see 3 months, 6 months, or a year as the policy period. This means that the rate is only locked for that timeframe, assuming you continue to pay your premiums throughout that period.
You are not guaranteed the same rate once your policy renews. In some cases, premiums will change because your driving record or personal information may have changed. However, it’s also common for premiums to increase even when those personal factors remain constant.
Does the Strategy Actually Work
You may wonder why some companies would actually do this. After all, wouldn’t customers simply leave after that initial period? The reality is, most people live extremely busy lives. They don’t necessarily have time every 3 to 6 months to request new insurance quotes and switch companies. Most will remain with a company for some time, even with increases, before they get around to switching again. So, the strategy does often work. Plus, the increases are not always immediately dramatic. It’s usually a slow and gradual increase. You may no even realize how much it’s gone up since you first signed up!
How to Beware of Insurance Companies that Lure Customers with Low Introductory Rates
Selecting a reputable insurance company is the best way to avoid this situation. Consider using an Independent Insurance Agent. Independent agents are familiar with many different insurers and can help you pick one with good rates, good service, and a solid reputation. They can even shop around for you, saving you valuable time. Contact Eagle Trust Insurance today for help with your auto insurance needs in Massachusetts.
