Shopping around for favorable car insurance quotes is just one way to minimize this monthly auto-related expense. The coverage you have right now may not be necessary, though, and adjusting it may keep you covered while lowering your payment.
Does this mean you must change car insurance companies, even if you enjoy your service? Not at all. You just need to know how to negotiate, which is what we’ll offer tips on right now.
1. Look for life changes.
Have you recently made any significant life changes that could affect your driving? If so, a car insurance company may let you slide when it comes to paying so much.
Maybe you just retired and will barely drive anymore. Or perhaps you changed jobs to one that’s closer to your home, which will reduce your mileage. Either way, you can cash in on these changes since you won’t be on the road as much, which reduces your driving risk.
Different driving habits aren’t the only life changes that could lower your bill. Other factors can affect it too, such as getting married. After you walk down the aisle, contact your agent. They may be able to secure a discount due to marriage. The same holds true for having a domestic partner.
Did you move to a new city? State this too. Some areas have lower accident rates. The less risk around you, the less you could pay.
2. Ask for discounts.
It never hurts to ask, especially when it comes to auto insurance discounts. Your agent may have skipped over this, so make sure that every applicable discount is used.
3. Cut coverage when necessary.
It’s never a good idea to reduce your coverage just to get a lower payment. If you can cut it and maintain proper coverage for your vehicle, however, go for it.
One situation where cutting coverage becomes logical is if you have an older car. If the insurance costs more than the price to replace it, consider dropping comprehensive and collision coverage. Such coverage is better served for newer cars or to satisfy the requirements of auto loans.
4. Increase your deductible.
In certain situations, it can make sense to have a higher collision and comprehensive deductible. If you can handle the financial risk or hardly drive, increasing your deductible could result in cheaper car insurance.
What happens with a higher deductible? It increases the amount you’ll have to pay out of pocket if a comprehensive or collision claim arises. Again, only make this move if you can afford the potential risk.
5. Shop around after specific times.
Keep an eye on the actual dates of any past tickets, moving violations, or accidents. After a certain period, they can be dropped from your driving record, which should result in lower rates.
For instance, if you had an accident three years ago, shop for new car insurance on that third or fifth anniversary. Depending on the incident, it may yield a lower payment once that date passes.