Take the Necessary Steps to Save on Auto Insurance

March 28, 2008 By Tisha (Kulak) Tolar

One reason consumers fail to save money on their auto insurance is because they fail to review their policy every year. Only a very small percentage of consumers actually take the time and reap the benefits of this annual review. Look over your policy first to make sure it is still accurate and make sure you have the right coverage you need on all of your vehicles. If you have paid off a car loan, have a new driver, changed your mileage to work, or other changes have taken place in the last year, discuss this with your agent. You may be able to adjust your policy and get big savings in return.

After reviewing your policy, take some time to shop around for a better deal. If you find a better price, make sure you look at other factors including the new company’s ability to provide discounts and the services and coverage your require. Take into consideration that by switching insurance company, you may lose out on customer loyalty discounts and other special offers reserved for long term customers.

Make sure the terms of your policy are still financial acceptable. If you are making more money a year later, you may want to consider increasing your deductible and paying smaller premiums. Just make sure you will have enough cash to put out in the event you need to file a claim and have your vehicle repaired.

If you make a move to a new company, stick with a company who has a good reputation and not just the company with the lowest quote. In the event you ever need to file a claim, you want to be sure your insurance company has your back.  While you may never need to file a claim, those who do will soon learn how important it is to be able to rely on the company’s assistance. Because there are so many new companies springing up online offering what seems like great rates, it is always worth it to do a little homework and make sure the company is legit and that they are licensed to provide insurance in your state.

Last but no least, make sure if you are changing insurance companies that your coverage does not lapse. Ensure with the new company that your new policy will begin as soon as your current policy expires, usually at midnight on the expiration date. If you switch to a new company in the middle of a policy term, be sure to cancel your old policy in writing and follow up with the company to see if you qualify for a refund of the unused portion of your paid premium.

Posted in autos, financial plans, insurance, personal finance basics, saving money

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