Over the years, insurance companies fund a multi-billion-dollar seismic wave of television car insurance ads. They try to convince car owners that the most affordable car insurance coverage is only a call away. Although such pitches sound unbelievable, advertisers are spot on in this case.
According to a survey, 38% of motorists have never evaluated their car insurance costs for the past three or more years and another 17% have never checked at all. The study shows that car owners are missing out on saving opportunities by sticking to their current carriers. The amount of savings ranges upwards in higher premium states like Michigan, Delaware, and Connecticut.
Reports show that consumers can save between $410 and $1850 annually by just shopping around. Car insurance rates are based on the policyholder’s statistical chances of getting into an accident or having a vehicle damaged or stolen. Other factors considered by insurance providers include age, driving record, address, gender, credit rating, marital status, and model driven. How to get the best deal?
Do Some Shopping
It is advisable to call multiple carriers to compare rates if you are getting married or divorced, moving, adding younger family members to the policy or switching cars. Also, you can shop around if you were involved in an accident or have moving violations. Some companies charge more for perceived additional risks and cost less for coverage considered less of a gamble.
If you decide to switch companies, you can get reimbursed for unused coverage. Never let your policy to expire when searching for better deals. This makes you vulnerable to legal consequences and personal liabilities for driving without insurance. Also, you will most certainly pay higher rates when you go for reinstatement.
Tweak your Coverage
Reducing your coverage helps to lower premiums. It is possible to save considerable amounts by keeping liability coverage for property damage and bodily injury to the minimum as needed by your state law.
Another excellent way of lowering premiums is raising your out-of-pocket deductibles charged on collision and comprehensive coverage that includes theft and physical damage. In case you have an old car with minimal resale value, it is advisable to drop collision and comprehensive coverage altogether.
It is wise to drop some provisions that may be redundant and covered elsewhere. You can cancel the medical payments section that covers passengers’ and driver’s injuries if a health insurance policy already covers you.
Furthermore, if you have the manufacturer’s roadside assistance plan for your car or you are a member of an auto club, you can waive any towing coverage. Avoid rental reimbursement coverage if you have another vehicle at your disposal or use public means to go to work.
Whether you are shopping around or you want to re-evaluate your current carrier’s coverage, aim at getting all the discounts offered by your carrier. These discounts vary from state to state and from carrier to carrier. Therefore, conduct a background check to get the best and most affordable car insurance deal.