Let's face it! Automotive insurance isn't cheap, but unfortunately it is one of those necessary evils we must endure to stay protected on the road. Just the other day, I was driving down the freeway when I heard an car insurance commercial indicating that the average American goes 12 years without using their insurance. To me, that is simply insane...Roughly 144 payments made between filed claims, and depending on your insurance coverage, those costs can add up fast! And while autonomous vehicles could soon be the future, as it stands now, there is no easy/cheap alternative to insurance coverage. So...we might as well call a spade a spade and see if we can't get the lowest possible rate around!
With more drivers than ever on the roads today, car insurance has solidified itself as a complete necessity. Each year the U.S. faces over 6 million accidents, and without proper insurance, you could wind up paying for repairs yourself. Thankfully, there are lots of fantastic insurance companies out there that provide excellent coverage. However, ensuring you get the lowest possible premium for your coverage can be challenging. This article will guide you through 4 quick tips to helping you find and maintain the lowest possible premium.
Compare Insurance Companies
Whether you’re a new driver just starting out, or already insured and looking to switch, comparing the coverage and rates between insurance companies is essential. Not every company offers the same coverage, and not every driver is rated the same, so it’s important to shop around as much as you can.
Start by doing some basic research. Choose between 4 and 6 of the top insurance companies and request a quote. Some might require you speak with an agent, while others will have online forms capture your information. It is a good idea to request 2 different coverage quotes per insurance company to see how their rates can vary. Start with an estimate for the coverage that best meets your needs, and another for full coverage.
Look for Discounts
Nowadays, most insurance companies offer group and bundle discounts. If you’re looking to save some money, consider grouping your policies together with home, life, or renters insurance. Some companies can offer special discounts depending on your education level, military status, age, driving record, and even industry of employment. Contact each company and find out what discounts they offer and see which ones add up for the best discounts.
Negotiate your Rates
The art of negotiation is still alive and well when shopping for insurance, although it has become less common. With so many insurance companies offering quick online estimates, the need to contact an agent directly to negotiate a premium has fallen by the wayside. However, reaching out to an agent or live representative can still be beneficial and help ensure your premium is the lowest possible.
Indicate you’re shopping between insurance companies and see if they can match of beat a competitor’s rates. Also ask for information on any discounts or bundles. Agents usually have a bit more influence over premiums that the website, so negotiating your business in exchange for a lower premium can easily turn out in your favor.
Reduce your Coverage
As a last option, you can always consider lowering the coverage for your policy. If you have an auto-loan, then you might be stuck with your lenders specifications for full coverage. However, if you own the vehicle outright, selecting a more basic coverage can net significant savings. As a recommendation, start with a higher deductible, and work your way backwards to less coverage for comprehensive and collision. You might be surprised how much you can save by switching from a $500 to a $1,000 deductible.
Shopping for auto insurance is certainly an exhausting process, but at least it doesn’t have to be an expensive one. As long as you shop around, do some research, and explore all options, you can walk away feeling well protected and for a fraction of the cost. Safe driving!