The insurance market is a very competitive industry. Consumers are flooded with mailers, e-mails, web banners and commercials everywhere they turn. Insurance companies know people are struggling to save money while their competitors are raising their rates each policy term. While you are shopping to find the best deal, it’s important to stay realistic when you deal with each company and make yourself aware of the buying and sales process.
Here are 5 Tips to Save You Money on Auto Insurance:
Combine your policies
If your home and car insurance policies are with 2 different companies, call each company for new quotes to include a multi-line discount. Talk to your car company about the potential savings of bringing your homeowner’s insurance to them and do the same with your homeowner’s insurance company. Insurance companies know the likelihood of you leaving them for a new insurer diminishes as the number of policies you have with the company increases. The insurance companies offer large discounts when you combine policies so they can keep you longer.
Look for available discounts
Ask about discounts for low mileage, teenage drivers and defensive driving training. If you have not reviewed your policy in a while you may be missing out on discounts you weren’t aware of.
Call 3 major competitors
Three major competitors of your existing company will usually offer more competitive rates. Major competitors also offer comparable claims and customer service experiences. Choose a company based on their reliability in the market, and their ability to pay out claims. Ask your friends, family and coworkers about their personal experiences with one of the competitors.
Shop what you have
When you call for a quote, the price may sound so much better to you because they are not quoting you with the limits you currently carry on your existing policy. Don’t let a representative talk you into reducing your coverage to save money. Only you can make such a decision and you have to weigh the pros and cons of increasing your exposure to the possibility of a loss.
Identify the benefits of staying with your current company
Talk to your current insurance company about your concerns and your reasons for leaving. What are the benefits of staying with them? Ask them if you are receiving any extra discounts or perks for your longevity with them. Talk to each company about how you would be charged if you were in an accident. Will your current company charge you, or remove a good driving discount? If you leave one company for another and get into an accident you may face a surcharge with the new company that your old insurer may not have charged.
When you are shopping for insurance it is important to look at the big picture. What is the potential for a future rate increase, savings for combining policies and likelihood of a surcharge if you are at-fault in an accident? Don’t fall for the hype; take charge of your own insurance experience.