5 Foolproof Ways to Maximize Your Car Insurance Savings
Everybody wants to save money on car insurance. But it isn’t easy. Most of us don’t want to change our level of coverage, or go to a higher level of excess; we just don’t like seeing our money disappear in hefty payments for an intangible asset.
Don’t despair. There are ways to save on your insurance without sacrificing coverage. Read on to find out how.
Image by Martin Howard
Shop Around
First and foremost, compare car insurance with care. Find the best rates you can for the level or type of coverage you want. Don’t forget to read reviews on how ethical a company’s dealings are. After all, paying for insurance doesn’t do you a lot of good if they weasel out of paying up when the time comes, or make it as difficult as possible to process a claim.
Read the Policies Carefully
Insurance fine print is mind-numbing to read and filled with jargon, but you simply cannot skip this during the shopping phase. If you do, you may discover after the fact that you weren’t comparing “apples to apples”, so to speak. It can be helpful to make a chart of the factors you’re examining (policy limits, excess, premium, etc) so you can easily compare policies side by side.
Keep Your Company Informed
Once you do choose a company and policy, make sure to keep them informed of changes in your own life, like age, marriage, or a move. For example, your premium should drop when you reach age 25 because you are statistically less likely to have an accident. Yes, the company should adjust your premium automatically, but sometimes it doesn’t happen. A married person is less likely to be in an accident than a single person, also meriting a drop in rates. Moving may mean a lower premium or a higher one, depending on the statistics on crime and accidents in the two areas in question.
Ask about discounts
When you first purchase your policy, and periodically thereafter, ask if you qualify for any discounts or if there are any programs you could complete to earn a lower rate.
If you haven’t had an accident, ask about a no claims bonus, which can get you a significant reduction on your rate. If you have multiple policies through the same company, you may qualify for a multi-policy or multi-line discount. If your insurance company sends you advertisements or promotions in the mail, don’t just throw them out; read them. You may find a valuable money saving tip that way.
Check to see that you got your discounts
This is an important step that sometimes gets left out, which is a real shame if you’ve done all the other work to get a rate reduction. Follow through and check your next bill to be sure that your discounts have been properly applied. If they haven’t, call and calmly explain the situation; after all, insurance companies aren’t out to purposely rip you off. A mistake is more likely a human error than a devious corporate plot.
But anytime you speak to an insurance representative on the phone or in person, make note of the time, date, name of the associate, what was discussed and any promises made (“We’ll call you by tomorrow afternoon,” etc). Then there’s no guess work if something isn’t done as promised.
A little bit of care and diligence is all you need to save you money on insurance. These small changes may not save you hundreds or thousands (although they could); but I know I’ll take any savings I can get on a necessary bill like this one. You can’t go without it, so you might as well pay less for it.
This article contains general advice about car insurance. The author has not taken into account your financial situation or needs and you should consider whether the advice provided is appropriate for your own circumstances before relying on it.
Filed Under: Car Insurance
