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Can every insurance carrier truly save you money? We’re constantly bombarded with advertisements promising savings if we switch providers. But can we believe these claims?
The reality is that savings depend on various factors including your type of car, coverage, driving record, location, driving habits, and even your credit report. Each insurance company has different rates for these variables, and if you fit their ideal customer profile, they offer their best rates.
Here are some strategies to save on your auto insurance policy:
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Regular Shopping: Shop for auto coverage every 6 months or annually. Factors like your age, car age, and driving record can change over time. Many insurance companies only consider accidents and tickets from the past 3 years.
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Minimum Liability: Carry only the minimum state limits for liability. This is especially sensible if you don’t have significant assets outside of your home and car. For example, in Texas, the minimum is $25,000 for bodily injury, $50,000 per accident, and $25,000 for property damage.
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Deductibles: If required to carry comprehensive and collision coverage, request quotes for different deductibles. A higher deductible means lower premiums.
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Avoid Unnecessary Coverage: Be wary of additional coverage options unless you need them and the rates are affordable. Towing, rental reimbursement, medical/personal injury protection, and uninsured/underinsured motorist protection are all optional and cost extra.
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Don’t Assume: Don’t assume you have the best rates from your current insurance company.
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Use an Independent Agent: Don’t hesitate to shop your insurance. An independent agent can get rates from several companies at once with just one call.
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Combine Policies: Try to combine auto and home/renters policies from the same company. Most companies offer a multi-policy discount.
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Ask Around: Ask people you know about their insurance provider and what they pay. This can give you an idea of what the insurance market is offering others in your area.
Remember, it’s your money. Make it work for you.
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