Car insurance can be a hassle; in fact it is such a bother that people ignore simple steps that could save them big money. Believe it or not checking your insurance protection doesn’t have to be hard. Here are five suggestions that can save you time, save you money and help you make sure you have the correct coverage for your vehicle.
1) Schedule a yearly review of your car insurance plan.
Year-to-year big changes occur in your life, you may get a raise, you might get married (or divorced), you might get a new car or you might move or get a new job. Whatever the change chances are they will affect the type of coverage you need and the cost that you have to pay for it. A yearly review with your insurance agent can pinpoint these changes in your life and determine if you need to change your coverage to reflect them.
For example, you might have gotten a new job. To get to the new job site you now have to drive more miles (or less) per day, or you may have joined a car pool, reducing your actual mile driven each day. Daily car mileage is a big factor in the cost of insurance. An annual review should address that issue. Another huge factor is the drivers listed on your policy. Did your child graduate from college and leave home? If so, you might be able to delete him or her from your coverage. Likewise unreported household drivers might result in no or reduced coverage in the case of an accident. It is best to make sure that that is covered in the review.
Don’t know what to review? A professional insurance agent can perform the review for you and make sure your coverage is up to date.
2) Make sure that when you obtain a quote it is an “Apples to Apples” comparison.
Some unethical insurance websites and companies provide you with a minimum coverage quote, rather than the coverage you truly need. It makes no sense to save money on a policy only to find out at claim time that your windshield isn’t covered or that you have inadequate coverage for liability claims.
An ethical insurance agent will provide you with a point-by-point comparison. Don’t get ripped off by a company that just sells you a minimum limit policy.
3) Make sure you get quotes directly from an agent who represents the companies he quotes.
It is common in the industry for insurance companies to claim that their rates are lower by providing automated quotes from a lot of companies from a big website. Just because they say they checked hundreds of providers to get the rates don’t mean that they quoted them correctly.
Not all companies use the same criteria to obtain a quote. Unless someone goes into the quoting system and answers all the company specific rating questions you never receive a correct quote. In fact, in order to get a correct quote from a large number of companies, you would spend all day answering rating questions.
It is far better to get fewer quotes from an independent agent that asks all the right questions, than to get a hundred inaccurate quotes from someone who does not have your best interest in mind.
4) Get a quote in advance of your cancelation date.
Believe it or not you can save huge amounts of dollars by getting your car insurance quote before your due date. Companies believe that your willingness to work in advance shows a level of maturity that will reflect in your driving habits. They believe it so much, that they are willing to reduce your new policy premium by as 10% or more.
If you plan ahead you can reap the savings!
5) Combine your insurance purchases
You heard it time and time again, “Bundle and Save!” Everyone from a green gecko, a duck or a waitress tell you to bundle and save. But did they mention that you don’t necessarily have to bundle with the same company. Many auto companies will give you a discount for just having a renter’s policy or a homeowner’s policy with any admitted insurance company. Go figure!
Of course just because you get a one type of discount doesn’t mean that you are getting the lowest price. There are literally hundreds of different discounts available. Whether or not those discounts save you really money is a “depender.”
The bottom line is…
If you have an annual review from a reputable licensed independent agent, chances are good you will save money and have better insurance coverage.
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Enhanced Insurance is not written by attorneys. If you’re looking for legal advice, you need to contact a lawyer. Further, insurance practices and forms change constantly and are varied from state to state. For definitive answers in your area, contact a local agent.
While the majority of people want an agent involved in their purchase of insurance, many people want to see if they can save money by buying direct from the insurance company. Others want to try a direct quote to make sure the premium they’re now paying through their local agent is fair. If you want a quote for your coverage, click on the competitive quote button on the right side of this page.