Is it possible for every insurance carrier to save you money? Insurance companies all claim to be able to save you money by switching to their insurance company. Watch television, listen to the radio or read the paper and you will get a common advertisement message reads, "switch and we will save you money". Geico says give us 15 minutes and we can possible save you 15%. Can you really believe the message?
The truth about saving money is about your type of car, your coverage, your driving record, where you live, where you drive and even your credit report. Each insurance company has rates for each of the mentioned variables and if you match the ideal customer for that company, they offer their best rates.
Here is a list of 8 ways to save on your auto insurance policy:
1. Shop auto coverage every 6 months or year. Your age, your automobile age, and your driving record are all subject to change every 6 months or year. A lot of insurance companies only carry accidents and tickets for 3 years.
2. Only carry the minimum state limits for liability. Each state requires the automobile owner to carry minimum limits to be able to drive. This makes sense if you do not have any real assets outside of your home and car. (In Texas, the minimum is 25,000 bodily injury, 50,000 bodily injury per accident, 25,000 property damage).
3. If required to carry comprehensive and collision coverage, request a quote for different deductibles. (Deductible is the amount you must pay first before your insurance company covers a claim). I higher deductible means lower premiums.
4. Don't fall for the additional coverage options unless you need peace of mind to have them and the rates are affordable. The towing, rental reimbursement, medical/personal injury protection, uninsured/underinsured motorist protection are all optional coverage and cost you more money.
5. Don't assume you have the best rates from you current insurance company. Refer to tip #1.
6. Don't get lazy about shopping your insurance. With 1 call to an independent agent, they can do all the work to get rates from several companies at once.
7. Attempt to combine auto and home/renters policy from the same company. Most companies offer a multi policy discount.
8. Ask other people you know who they use and what they pay. This will provide you with what the insurance market is doing for others in your area.
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