We all know it, car insurance companies want to get every penny out their customers and they know the tricks to get the job done. You should be aware of what effects the price of your car insurance all the time, but especially when you are about to renew.
Car insurance providers know that the vast majority of drivers don’t do enough to compare insurance rates and makes sure that they are paying the lowest possible charges on their policy. In fact one in four drivers don’t look for a single quote when their insurance is up for renewal. If you don’t look around car insurance companies can not only keep your rate the same, they can increase it without you knowing that you could get a better price. Always be aware that a lower price is out there.
Don’t Use Auto-Renewal
Often when people originally signed up for their car insurance, they are asked if they want to sign up for auto-renewal. This may sound like a good idea, it certainly seems convenient, but it is really just a way to prevent you from looking for better rates. Year after year you will pay more than you need to, usually with no way of opting out until it charges your card.
Read Renewal Information
According to the specialists at MoneyPug, a site used to compare car insurance, the information on renewals is meant to be confusing, they want it to be hard for you so you don’t read it at all. Often they omit last year’s premium cost, making it difficult for the client to know if they are being charged more than the year before. Further than that, some companies choose to include last year’s costs for certain clients, ostensibly when it benefits them.
Get Ahead of Cancellation Fees
Since some car insurance providers charge to cancel your account and insurance policy, you should know if you are going to have to pay or if you can avoid it. You may get stuck with an insurance company if you don’t want to pay the fee, which happens to be a remarkable amount of people. Still you may be able to make up for the charges if you find a cheaper insurance option and cut costs.
Be Skeptical of Soft Language
Of course car insurance companies aren’t going to make you feel bad about paying more with them, so they use soft language to make you think that there are benefits to auto-payment and automatic renewal. They may say things like “happy anniversary” or “you don’t have to do anything.” These are to make you feel at ease, all while taking the highest premium from you that they can get away with.
Look for the Right Policy for Your Situation
While you may think that the best car insurance coverage is the cheapest just because you will pay less now, you are mistaken. Taking out a car insurance policy is more about finding the best rate and coverage for yourself and your particular situation. You don’t want to have to pay sky-high costs if something happens.
Instead you want the cheapest policy for the most coverage. There are plenty of ways to do this. It is always best to compare rates and coverage from many providers, using both comparison tools and the companies’ websites. Knowing which policies include legal protection, key replacement, and travel as well as many other coverage traits will give you an idea of what you need in a car insurance policy.
Find Ways to Decrease Prices
Avoiding car insurance companies’ tricky tactics and exploitative behavior is one way to keep the cost of your policy down, but you also need to keep on the lookout for ways to get the upper hand. There are many simple tricks that can lower your policy. From putting down the right profession to adding highly experienced drivers to owning a cheaper car, all of these methods can save you money in the long-run. Don’t sit back and take the abuse. You can have a cheaper car insurance policy. You just need to put the work in and you will find that you have been paying too much all along.