Automobile insurance is one of those things that many of us never use or want, but don’t ever want to get caught without. If you’re one of the faithful insurance company subscribers that have been with the same insurance company for years, chances are that you’re not getting the best deal that you can. Contrary to what the big insurance companies tell us, there is no great reward for loyalty. In fact, they penalize you for complacency. I was once a faithful customer of a large nationwide insurance company and even though I had never filed a claim or received a ticket, I found that my insurance premiums increased every year which sent me on a personal crusade to insure that my insurance was the cheapest policy available.
Price shop your policy annually
I now have an annual tradition that begins one month prior to expiration of my current policy. Each year, I sit down and call all the competitors both large and small to see who will give me the best rate. I make it immediately known that I don’t care about service levels, claims centers or any other of the perks that carriers use to sway you. I only want to know about the apples to apples price comparison for my policy needs. I can usually get a 5% – 10% savings over my current carrier.
Combine your policies and search for other discounts
When I shop my auto policy each year, I do the same with my home owners insurance as well. I make sure that the insurance company gives me a perk for not only holding more than one of my policies, but I make them give me other discounts as well. I have never had a moving violation on my record and I have found that many companies offers discounts for this, but they are reluctant to tell you unless they need to get your business. Not getting your discounts can cost you as much as 10% on your premiums.
Reduce Your Coverage if feasible
One of my vehicles is over 10 years old and has no loans. I didn’t see the need to carry full coverage on this car and for someone that’s on a very tight budget like I was every penny saved was a lifeline from financial disaster. For another car that still had a loan, I reduced my coverage to the minimal requirements that the lien holder had and I increased my deductible. While some may balk at this move, when you’re financially strapped, you’ve got to do what you’ve got to do.