Overcharged and Unaware: 5 Ways You Might Be Getting Cheated on Your Car Insurance
Car insurance can be a tricky subject because rates include so many variables, thus, many drivers will sign up for the recommended level or whatever their car dealer suggests. Many drivers will simply stick with the same insurance they’ve had since their first car. Every individual and car is different, so signing up for standard insurance isn’t always the answer. Read on to learn about a few things that contribute to paying too much for car insurance and see if you might need to adjust your plan.
Not Shopping Around
The first big mistake consumers make is failing to obtain more than one or two quotes when shopping for car insurance. Different companies will view riskiness differently, weighing factors like location, credit rating, age and marital status. With so many variables it is critical to shop different quotes at least once every couple years to make sure you continue to receive the best deal possible. Yes, it’s easy to stick with convenience if you’ve been using the same insurance for several years, but if you can get a better deal somewhere else, it’s much more convenient to switch.
Not Inquiring About Discounts
Car insurance companies offer a variety of discounts but they will not always apply them automatically. Students with good grades could be eligible for discounts. Members of alumni groups, AARP, AAA or professional organizations could be eligible for discounts as well. Completing defensive driving tests will also qualify for a discount from certain insurers. Many agencies don’t highly publicize discounts, so check with your insurer for all available discounts—saving a little each month will really add up.
Paying For Unnecessary Frills
Many standard insurance plans will include extras that are unnecessary and potentially redundant. Most insurance companies offer an emergency roadside assistance option, which is a waste of money if you are already a member of AAA. If you can work from home for a couple days with no issue or borrow a spouse’s vehicle you can consider dropping an option for a rental car in case your current car is totaled. Carefully read each line of your policy and make sure you aren’t paying for any frills you don’t absolutely need.
Not Bundling Insurance
Most major insurance companies offer a heavy discount for bundling car insurance together with homeowner or renter’s insurance, often up to 10-20%. This discount is designed to discourage consumers from shopping around but the discounts for switching bundled insurance can often be deeper as well, so make sure to keep shopping for competitive quotes every year or two.
Over-Insuring Your Car
Comprehensive car insurance is required by some states, but not all. A typical coverage reimburses comprehensive damage for the current value of a vehicle, not the purchase price. If you are driving an older vehicle with a low book price often the check you receive after a deductible is not worth the insurance you are paying. A good rule of thumb to follow is that the more a car is worth the more insurance you should carry for it.
If you don’t know much about car insurance, you could easily be swindled into paying way more than you need to. It’s helpful to do a little research about your insurance provider, competing providers, and discounts available. After you’ve done a little research, meet with your insurance agent and have specific questions prepared so you can get the breakdown on your policy. The more informed you are about your personal policy, the less likely it is that you are getting ripped off. Information for this article was provided by the professionals at Valley Driving School who offer driving lessons and motorcycle training in Langley.
Category: Car Insurance
