Get it and Forget it Auto Insurance Policy

Saturday, May 11, 2013

Get it and Forget it Auto Insurance Policy

It’s easy to forget when you have your monthly premiums deducted automatically from your bank account. Just because everybody does the same thing doesn’t mean it’s the smartest thing to do.

Time to Revisit your Policy

Image credit: sqback / 123RF Stock Photo

It’s time to dust off your policy and see how much money you can save. It may very well be that when you first set up your policy, it was as cheap as you could get. However, over time it’s common for things to change, either in your life or changes, in your insurance company that can affect your rates. Insurance companies are not usually in the habit of calling their policy holders to see if they can save them money. That exercise is going to be left to you. Here are some ways you may be able to save money on your auto insurance policy.

  • Raise your deductible: The higher the deductible the less you will have to pay, but many people don’t realize how much they can save. If you up your deductible from $100 or $200 to $500 you can save anywhere from 15-30 percent on collision if you were to go all the way up to $1000 you could save as much as 40%. Once you decide to raise your deductible develop a way to save money just in case you have an accident and need to pay it.

  • Get rid of coverage you don’t actually want: Not every company does this, but they often pack in any number of coverage options that most people will never use. Also consider dropping comprehensive and/or collision if you have an older car that is just not worth replacing.

  • Change the car, you drive: Everyone knows it’s more expensive to insure sports cars and other high end automobiles like a Bentley, for example. Not everyone knows that insurance companies usually charge more for drivers of cars that are most often stolen. Cars like the Honda Accord and Toyota’s Camry usually make the best 5 in that list of most stolen cars. Both models have held the number one spot from time to time.

  • Add safety equipment: Insurance companies want to reward you for making your car more difficult to lift. You can save money by having an approved alarm/anti- theft system installed. Before you do be sure to call your carrier ensure you have an approved system installed., You can save money by having anti-lock brakes, as well as automatic seatbelts. Your company can give you a list of things you can do to save money this way.

  • Ask about other discounts: From time to time car insurance companies will provide additional discounts that you may not be aware of. Since they are not obligated to tell every policyholder about them, you won’t be getting a call any time soon. You should call them and inquire about any car insurance discounts or any other ways you can save on your policy.

He Who Forgets pays More

So, I think we have established that the practice of purchasing a policy and sticking it in your glove box and forgetting it is not the best choice. On the other hand, you don’t need to call your insurance carrier every other month either. Ask about saving money every time your auto insurance policy is up for renewal. I would also consider making an inquiry every quarter. That will ensure that you discover ways to save money on your policy. You might even make some comparison shopping before you call. 

There may be nothing they can do to reduce your auto insurance policy cost, but they will always check when you make the call to them. Don’t just say you have been doing some shopping around; you should be doing  it. Just make sure you’re comparing apples to apples. One last tip, if you don’t already have your insurance bill automatically deducted from your bank account you should consider setting that up. Just about every carrier out there will offer some sort of discount for doing that.

About the Author-

Brandon Mills is associated with Titlemax and provides financial information and advice for loans and auto title loans.

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