Are You Paying Too Much For Auto Insurance?
People are constantly overpaying for car insurance without even realizing it. Even more surprising is that many people truly believe they are getting the best rates available. Others think that finding low priced auto insurance would take too much time and effort and this is why people keep paying outrageous premiums.
Most people never even bother looking for cheaper insurance because they’re under the impression that if they’re a long-term customer they will receive preferential treatment. However, in reality this is completely untrue. There is no better time than now to re-evaluate your current auto insurance policy. Naturally companies want to earn as much of a profit as possible but do really want it to come out of your wallet?
5 signs you’re overpaying for auto insurance:
• Failing to do your research. Comparison shopping is the best way to save money when purchasing insurance. As tedious as it may be you’ll end up better off in the long-run. Today, there are numerous online services allowing consumers to comparison shop from a nationwide selection of auto insurance companies. Just enter your preferences and instantly receive quotes.
• Not combining policies. If you haven’t already looked into combining your homeowners and automobile policies now is the time. Most companies offer deep discounts when you have both policies with the same provider. Companies such as Allstate and Farm Bureau, advertise multipolicy discounts that can shave 10% or more off your premium.
• Keeping deductibles too low. If your deductibles are too low, your premiums may be too high. According to the Insurance Information Institute, increasing your deductibles from $200 to $500 could lower your premium by about 20%. Make sure you are able to pay for your higher deductible if you end up needing to make a claim.
• Forgetting about discounts. Don’t be shy about asking for discounts. For example, teen drivers with good school grades are eligible for discounts. There is no guarantee but being of member of certain organizations like AAA can also save you money.
• Not taking advantage of low mileage. According to the Consumer Federation of America, policyholders who reduce the number of miles they drive each year to less than 10,000 could save, on average, roughly $100 off their annual premiums. Make sure to notify your agent if your driving usage has changed.