Shopping Around For New InsuranceIf you're happy with the service your auto insurance company provides, it may not occur to you to look around for a new provider. This may be a major mistake: you could be paying hundreds of dollars per year more than you need to be.
Because the auto insurance industry has become so competitive in recent years, your provider's competitors may jump at the chance to offer you a lower rate. If you navigate to an insurance website and build a policy that resembles your current plan, chances are you'll be rewarded with a rate that's 20 to 30 percent lower than what you currently pay.
Re-Assess Your Coverage and DeductiblesIf you haven't paid much attention to your auto insurance policy recently, it's likely that you're paying for coverage that you don't need. First, make sure that all of the cars in your household are noted on the same insurance policy, a move that could save you hundreds of dollars per year.
Next, consider increasing your deductible if you have a clean recent driving record. You'll pay much less for insurance if you carry a higher deductible, which can really pay off if you stay out of driving trouble. You should also consider dropping certain coverage if you determine they're not needed. For an example, if you have an older car, you may no longer need to pay for collision and comprehensive coverage.
Make the CallSometimes you don't need to change your coverage to get results - just call your current provider and ask if they can lower your rate. If you haven't talked to them in a while, this may convince them that you're serious about switching if a good enough deal presents itself. A frank conversation may just land you a new policy whose premium approximates the deals you got when you shopped around.
Bundle and SaveFinally, you may want to consider taking out all of your insurance policies--auto, life, home and health--with the same provider. Many insurers offer discounts for insureds with multi-policies. This can reduce redundancies and can save you up to 50 percent on your total insurance bill.
With these tips in mind, doing some spring-cleaning to your policy could net you some real savings.