Car insurance is one of the single biggest expenses in most Americans' annual budgets. If you aren't careful, you can easily overpay for car insurance, especially if you have had the same policy (and payment) for years.
Sure, when you purchased your car you may have wanted full coverage. Maybe you didn't have a whole lot of cash on hand at the time and wanted a lower deductible or maybe you were living in a state with higher required coverage than the state in which you currently reside.
Regardless of what has changed, chances are, if you haven't reviewed your automobile insurance in a few years, you are likely over-paying.
There are a number of ways to save money on car insurance.
Know what you are paying for. Most insurance companies use recurring billing for their current customers. This means that if you haven't read through your policy in a few years, you may not even know what you are paying for in the first place. That's why your first stop should be your policy itself. Consider simple changes such as changing your deductible or opting out of full coverage, each of which could save you hundreds of dollars a year.
Know what you need. After reading through your insurance policy, you may have noted a few things you feel are not necessary. Before making any hasty decisions, it is important to look into the legal requirements of your state of residence while factoring in your personal situation. If you haven't yet built up your emergency fund, you may want a lower deductible. If you own a newer vehicle (especially if you financed the automobile) you may in fact want to maintain full coverage. Point is, don't sacrifice coverage you need for a few extra dollars savings a month in premiums.
Slash coverage. After reading through your policy and familiarizing yourself with your own particular needs and wants, you should call your insurance company and make as many policy changes as possible (within reason) to reduce your annual insurance premiums. Just beware of cutting coverage that you are likely to need.
Bundle policies. Many insurance companies will offer steep discounts when you bundle your insurance policies. If your insurance company doesn't fall into this category, consider shopping for a new insurance provider by visiting AIM Auto Insurance, which offers a one-stop shop for automotive insurance.
Shop around. AIM Auto Insurance provides a great starting point when searching for a new insurance company. In addition, the insurance company Liberty Mutual offers some excellent and competitive rates on car insurance, which may be worth checking out if you are considering a new insurance company.
Beware of disreputable insurance companies. Fly-by-night insurance companies are nothing new, but in the world of instant coverage and online only insurance corporations, they have become more prevalent than ever. Using a screener such as AIM Auto Insurance or sticking with well known insurance companies like Liberty Mutual will ensure that if you ever need to file a claim, you will be working with a responsible and responsive insurer.
Slashing insurance expenses can be a great way to slash hidden expenses and pocket several hundred dollars a year in savings.
What steps have you taken recently to reduce recurring expenses in your daily life?
Photo By: cityofstrangers
Great tips. I think it's just too easy to renew each year, without questioing the deal that is presented by the insurance company. It seems that all the big insurers advertise how people save hundreds of dollars by switching. Maybe that's because they are all charging their existing customers too much?
ReplyDeleteHunter, I totally agree. I'm in the process of revamping most of my recurring bills in order to shave my expenses down as much as possible, and just reviewing my coverage was an eye-opener.
ReplyDelete