Auto insurance is one of those things you just need to have in life, no getting around it. You can, however, take steps to ensure that you’re not paying for what you don’t need. Maybe you can even get by with a little less coverage and save some money without sacrificing. Of course, there is a required legal amount needed to drive, but there may be extra expenses you can trim without giving up the coverage you need.
Talk to Your Agent
Insurance agents love to talk about the fascinating world of insurance and yes, it would be great if they spent their days reviewing your policy looking for unnecessary costs, but they don’t. So it’s your job to make them take a closer look at your policy now and again. Remind them that you’re a good customer, one with a solid driving record and a history of paying your premiums on time. Some insurance companies offer “good driver” discounts and other perks for drivers who don’t have accidents for a certain period of time. Get a new car recently? Even if it’s used, but new to you any safety upgrades might make you eligible for discounts with some companies.
strong>Eliminate Duplicate Coverage
Life happens fast and circumstances change all the time, so it’s easy to forget to call your agent and make changes to your policy. Coverage you needed when you first signed up for your auto insurance policy may not be what you need now. If you have more than one car, you may have duplicate coverage. This is especially true if you have different insurance companies for each vehicle. This is often the case if you’re not married, but have a live in mate; you may qualify for a family discount and not realize it. Roadside assistance and gap coverage (a loan/lease payoff protection plan) are often duplicated, especially if you have multiple policies. Consider consolidating coverage with a single insurance carrier. If this isn’t possible, cancel coverage that overlaps from other policies.
Bundle Policies
In addition to auto insurance, you probably have other forms of insurance such as homeowner’s coverage and life insurance. Consider consolidating all coverage with one company, if possible. Granted, not all insurance companies offer all forms of coverage, but many larger companies offer multiple kinds of coverage. Combing coverage might even earn you a discount. Insurance companies tend to appreciate customers who sign up for several insurance “products” and show their thanks by offering “loyalty discounts” or “consolidated coverage” discounts. What’s more, bundling policies under one roof may make it easier for your agent to assess your opportunities for savings.
Compare
The insurance industry, by nature, is extremely competitive. (Note the abundance of car insurance commercials on TV.) Compare coverage and rates online. Get some quotes and take these back to either your existing insurance company or the one you are interested in switching too. You have better leverage if you come to the table prepared. You’d be surprised at how willing an insurance agent is to bargain with you. This may include matching rates and offering perks not normally advertised.
Ultimately, how much or how little auto insurance you have depends on your needs and your comfort level. If you’ve had auto insurance for a while, you likely have some areas where you can eliminate unnecessary coverage. Start by reviewing which vehicles are covered how extensively. Look for areas of duplicate coverage, usually this includes roadside service and gap coverage. Finally, talk to your insurance agent. If you’re what is considered a low-risk policyholder, you may be eligible for certain discounts or be able to negotiate a better deal.
About the Author: Author Sandy Landsford is an accountant and blogs for carinsurance.org.uk, a site where you can get cheap car insurance. Get a quote today!
Image: crazbabe21 / Flickr
