Monday, 12 August 2019

How To Lower & Save Money On Car Insurance

How To Lower & Save Money On Car Insurance

Today I am very excited to talk about a subject that I have been meaning to write an article on for a very long time and that is car insurance and saving money and everything that you need to know about the subject and the reason why I haven't write a whole lot of article is because it is really just not my area of expertise. Insurance wasn't really my department.

I was really fortunate to have someone reach out to me and said you know what, you got a lot of good content on your site, why not talk about insurance stuff, and that is what we're doing today.

I emailed him all the questions that I would have as a consumer and that is what I want to share with you today.

Here is what I am going to do, I am going to break it down into the questions that I had asked him because I really just want to know for my own information and I am also going to share a few things that you can do to save some money on your car insurance policy.

Let get started

1. Do You Need To Wait For Your Current Policy To Expire Before you can Switch over to a new Insurance provider?

The answer is no. It doesn't matter if you just signed on for a renewal maybe 2 months ago and you've got 10 more months to ago, you can switch whenever you want and that was good news for me because I had to switch my condo policy, 

I save a couple of hundred dollars and I thought I did not have to wait for my current policy to expire so it was very nice and convenient not having to do that.

2. Isn't It Better To Stay With Your Insurance Company For a Longtime so you can get their Discounts?

Apparently that is not true, in fact, it is kind of the opposite, apparently, insurance companies, if you are someone that is been there for let's say 20 to 25 years. They will look at that policy and say, they are not going anywhere so even if we steadily increase certain premiums every single year, they are not going to go anywhere and that is just easy money.

It doesn't always work out in your favor to stay with the same place for a long time. Brand loyalty and car insurance don't necessarily go together, not always at least.

Another way to look at this is this way

If you are an insurance company and you want new business, well, you may be giving a discount to new people and not those that have been there again 25 years, 30 years and you have no real concern that they are going to leave.

So a lot of times insurance companies are going to give those discounts to new clients and if you are a new member you are going to get that new discount, so always make sure you are doing the best you can to make sure you are not overpaying for your policy premium.

3. Full Coverage Versus Liability

It is very simple if you have got a car loan you are going to need full coverage. Not only for your protection but for the lender's protection, the lienholder is going to want to make sure that their asset is fully protected and that makes sense or if your car is paid off, now you have the choice of whether or not and go liability or full coverage.

This is really simple too if your car is not worth very much it is only worth maybe $2,000, you will probably want to go with the liability coverage and use those monthly savings to offset any total that you could experience in the future. And on the other hand, if your car is paid off but it is still worth, let's say like $15,000 to $20,000

You are probably going to want to protect that as well with full coverage. It is not really a matter of how am I going to save the most money when it comes to full coverage versus liability, it is about how am I going to be protected most efficiently.

4. Tickets And Accident

How long do your accidents and your tickets stay on your driving record as far as insurances is concerned, and I was surprised to find out that it is different from state to state, for example, in Texas it is going to be different than David who lives in Arizona or any other reader who lives in a different state. 

If you got anything as far as like a bad driving record and it is about to fall off, take advantage of it once that time has expired. Because that really does a number on your policy premium and there is no point in overpaying if you don't have to.

5. How Often To Shop Around?

But even if you don't want to go necessarily with that route, every couple of years make sure you are going out there doing what you can to find out if there is a better provider or a better cost. Do your best every couple of years to shop around and find out if there is a better deal for you.

6. Age Discount?

The next question that I asked him was, what age do you get your first discount and he said at 25 years old and so if you are 24 and a half and you think your car insurance is a little bit expensive definitely know that relief is on the way, after that there is a bunch of other factors that come into play like when you get married, when you bundle and your driving record, so once you hit 25 years just know that there should be a discount coming. 

7. Why Use a Broker?

The last question that I ask him was why to use an insurance broker as opposed, why not going to these companies directly and it really comes down to convenience and discounts. 

From a convenience Standpoint: An insurance broker is someone that doesn't necessarily work with one company, they work with a whole bunch of different insurance companies across all 50 states and that is very convenient.

There are discounts: that broker may get a discount from going through X company and if they get that discount, that savings is going to be passed along to you.

That is it for car insurance, hopefully, you learn something.

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