6 Easy Tips to Truly Save Money on Your Car Insurance
We've been told many times through commercials that you can easily save money on your car insurance by switching to <insert company name>. It is a competitive market and insurance companies know this. However customers may find it more difficult to find the best price possible than they may have imagined. In this day and age, every penny counts so if you can save any money it is well worth the time and effort.
Just starting out in shopping for insurance you'll find there are numerous companies that are ready to cover you. However, what each do in terms of price and value are also important to consider. Trying to factor all of these in can be difficult and overwhelming.
But as time consuming and challenging as it might be, shopping for a better rate is never a bad idea. Knowing where to start and having a game plan going into the insurance market will help you make it as easy as possible. Here are some tips to truly save money on your insurance when getting quotes for your vehicle.
1. Be As Accurate As Possible
When speaking with an agent for a quote, it is important to be as honest and accurate with your information as much as possible. It can seem like a little detail, but ones have found that one thing being inaccurate could cost them down the line. Getting as much information at the beginning correct will help you out tremendously.
For example, even giving the wrong zip code for your address could hinder you from saving money. One factor that goes into the rating system is your territory. It's why your buddy over in another town may have a similar background as you, but tends to pay less even with the same insurance company and/or agent. Also, the insurance company could find out and update your zip code later on and now you're stuck with a higher rate with change in the territory. By getting it right the first time, you'll avoid a lot of the hassle of your rate possibly changing down the line.
2. Factor In Your Miles Driven
This goes along with the first tip in making sure your information is correct, but if you do not drive much each year or even each month be sure to say so. Companies will factor in that obviously the less you drive, the less likely you are to get in an accident. It might be something small, but this can sometimes not be factored in for you in the rate so being proactive will go a long way.
So if your work is close-by, say so. Ones who drive typically less than 10,000 miles per year will see a big difference compared to ones who drive more. Also make sure to mention if you are retired, work from home etc. as this will indicate that you on the road less than the average driver.
3. Contact Independent Agencies
More and more independent insurance contractors or agents are available in most areas. The big pro of these types of agencies is that they're able to quote you out of several companies compared to just one. This not only will save you time but give you more quotes at once that you can compare and see which will be the cheapest.
The representative that you speak with will also be looking at which is the best rate for you. It will help you not feel as pressured since they're looking out for your best interests instead of being exclusive to one company. Don't be surprised if this is more common place in the insurance world as time goes on with more people shopping and wanting the best rate possible.
4. NEVER Go Without Insurance
Depending on the state you live in, having a lapse in insurance could prove to be a big blow to getting a good price. In states that require at least liability as state minimum coverage this proves to be so. When rating your quote, you may have a clean driving record and live in a more suitable territory, but even a little lapse could hurt you.
There are circumstances where ones are unable to have coverage such as not owning a vehicle or living outside the country for a time. However, even just maintaining the state minimum instead of canceling all of your coverage all together will save you hundreds if not thousands of dollars in the long term.
When a company sees that there was time without insurance, this is viewed on paper as ones driving without insurance which again in certain states is breaking the law. That in turn marks you as a risk, even if you simply were not driving during that lapse in insurance. As unfair as it may seem if it is the law, it is the law. Keeping continuous coverage then is certainly vital in getting the cheapest rate.
5. If Possible Choose a Standard Company
If you're unsure what a standard insurance company is compared to non-standard you're not alone. Most do not realize depending on which company you sign up with can be considered as either standard or non-standard. Being aware of the difference can save you time and most importantly money when you are getting quotes.
To put simply, a non-standard is a term to classify insurance sold to drivers whose risk factors makes it difficult or impossible to obtain insurance at standard or preferred rates. So sometimes you'll see commercials for unbelievable rates, but it turns out they're non-standard companies. If you are a low-risk driver though, going with a non-standard company will ultimately hurt you from getting a good rate.
But you may ask, why is this a big deal? Wouldn't a person be able to get a decent rate despite what a company is classified as?
One big reason a non-standard company can hurt you is going in line with another tip of having continuous coverage. If you have had a lapse, or are a new driver starting out it can take up to two years of continuous coverage to be built back up before you are considered to be not a risk. Compare that to a standard company, it will take half the time. So long term you're hurting your rate by going with a non-standard company.
Another factor to consider is non-standard companies tend to lack in quality of coverage. When you have an accident it is important that you have no doubts about any damage being covered for insurance you are paying for every month. If you are going to pay for insurance, most standard companies will back up their coverage with some kind of "Claim Satisfaction Guarantee" so you are confident if something needs covered it will be taken care of. This can mean thousands of dollars saved compared with going the absolute cheapest route for insurance.
This may not be something you've considered before, but getting also a renter's or homeowner's policy with your auto may in fact save you money in total. Companies want their customers to be invested with them as much as possible, so when you bundle the discount will a lot of times pay for itself.
Also keep in mind if you already have a homeowner's or renter's policy you could also see if they can save you money on those coverage's as well. Depending on the company you receive a quote through, they may also offer discounts bundling with life, motorcycle, boat, and umbrella policies as well. The point being, it never hurts to investigate other policies in seeing if bundling will save you money even if you feel like you don't need it.
Every Effort Could Save You Hundreds
Above of all else, do not give up and think you're getting a good price where you are now. There is no obligation to get quotes and see what you could be paying with other companies. You'll be quite surprised to see what a little effort and time can bring for you, especially when every saving no matter what is important today. Never settle and by keeping these tips in mind, may you never overpay for insurance again.