We see all the commercials and all the information out there that tells us exactly how we can save on car insurance, but most of us don’t pay much attention. A lizard telling us we can save 15% with Geico, Flo from Progressive Insurance telling us we can save a lot of money on our auto insurance and the people who love their State Farm neighbor and their insurance benefits; we get it. If we switch our car insurance provider, we can save a lot of money. But what if we already use State Farm and want to switch? Do we head over the Progressive to see what they have to offer in terms of Auto Insurance or do we head over to Allstate?
Since it’s nearly impossible to figure choose an insurance company out of thin air and expect amazing savings, perhaps we should try something else; learning what questions we should ask and how we can actually save money on our automobile insurance. It might not be possible with every account, but that doesn’t mean it’s not possible with yours. The worst you can do is not try to save, because that’s a guaranteed no. If you ask around, check into things and know a few insider secrets, however, you might turn that no into a yes whether you use Progressive auto insurance, Allstate, State Farm or someone else entirely.
Check Your Coverage
Did you know that you might consider full coverage an amazing thing, but it’s not if you’re not driving a newer car? For example, you have to have full coverage if you have a loan or you drive a lease, but did you know that you don’t need a few of the ‘extras’ driving an older car, and that not having these is not going to affect the outcome of any accident or damage to your vehicle? Some coverage is simply not needed and will not benefit you if you drive a car that’s a certain age or a certain price. Ask your insurance agent to clarify this information for you to see if you can drop the price of your coverage by removing coverage you don’t need.
What’s the Best Deductible?
Unlike health insurance when paying a higher deductible means paying a lower monthly premium and the coverage is essentially the same otherwise, car insurance does not necessarily work this way. In fact, according to Progressive Auto Insurance, a policy with a higher deductible actually comes with approximately 15% less coverage than a policy with a much lower deductible. Now you have to choose; do you want to pay less each month for less coverage or pay a bit more each month and rest assured that your coverage is comprehensive in case anything happens? These are considerations you do need to make when shopping for car insurance.
Don’t feel any loyalty to a car insurance company simply because you’ve been with them a decade and they’ve treated you right. Shop around. It’s better to ask around about coverage and what it means to save money with different companies than it is to stick with a company that might be charging you more than necessary.
Call around and ask about insurance. If you find a rate that’s lower and has the same coverage, you might consider switching companies. You can also call your current provider and ask if you can have your premiums lowered on your current plan. If they say no, you can tell them you’d like to cancel your policy because you’re going elsewhere. Chances are pretty good that they will then go ahead and lower your rates so that you will stay on as a customer.
Do I Qualify for any Discounts?
Did you know you can call your insurance company and ask this question? You might qualify for some discounts based on the fact that you have a good driving record, that your life situation has changed or that you have done something such as turn a certain age. Believe it or not, many car insurance companies will lower rates based on things such as having babies, getting married, buying a home, getting a life insurance policy or even having a clean driving record. For example, if you’re 31-years-old and you’ve had a driver license for 15 years without ever receiving a ticket or causing an accident or even using your insurance, you should qualify for a lowered rate because of your proven safety record.
One other very important thing to consider is where you live. If you moved even just to another neighborhood with a different zip code right down the street, you might qualify for a discount. Many car insurance policy rates are based on location. If you move, you might qualify for a discount. However, you will not know this until you ask your insurance company to check for you.
Bundle and Pay in Full
If you have several policies, you’ll save money bundling them together. For example, if you have car insurance, homeowners insurance and life insurance with the same company, you will find that it’s less expensive for you to bundle these and pay a lower rate than it is to have these with separate companies and on separate policies.
Additionally, if you pay in full, you will also receive a discount. To do this, ask your agent to sign you up for either one big payment every six months or one big payment once a year. This means you will not have to pay that bill each month, which saves you monthly payment fees and even provides you with a discount. Ask your insurance provider how you can save money on your policy by paying in full each term. The savings might be significant, and it might make that big up-front payment seem even less expensive based on the amount you’re saving each month or quarter. Again, you never know what kind of savings you might qualify for unless you ask, and it might be significant.
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