As it is now officially 2017, many drivers are going to have to renew their auto insurance policies sometime in the near future, and if you are like most drivers, you may not do much about it. Many simply press renew, without changing much of anything on the policy. People think there isn't much they can do to reduce their car insurance bill when in actuality there are numerous things that can save hundreds every year. Here are the three main ones:
Don't Always Assume Your Company Has the Best Price: Comparison Shop
Before we even discuss your policy, you should see if your company is even the best car insurance for you in the first place. In any town in America, there are no less than six companies, but likely several more, that want your business, and they may differ by thousands of dollars. The competitiveness of the auto insurance market makes it so no one company is the best priced in every town and city. GEICO is a top three cheapest insurer in nearly 60% of all cities we surveyed, and while that is more than most, there are still thousands of cities where it can be a more expensive option. The only way to know if you live in one of those towns in the 40% is by comparison shopping.
Even if you are content with what your current company is offering you, there is a good chance another company can offer you an even better rate. ItThe internet makes it very easy to do it. You don't even have to go through the quote filing process if you are short on time. You can read articles like this one, where we discuss where people can find the best cheap car insurance in Los Angeles.
If You Choose to Stay With Your Company Make Sure You Have the Right Coverage
If you have a relationship with your agent, or enjoy the non-monetary perks of your current company, those are valid reasons to stay. Luckily, you can still save money by adjusting how much coverage you have. Agents are usually good at steering you toward the right coverage, but if you went through an exclusively online service like Esurance, GEICO and Progressive, you may have just selected whatever they recommended. How much car insurance a person needs can be tricky to gauge, but can mean the difference of hundreds of dollars every year. Typically drivers should get liability insurance equal to their net worth. So for those with a low net worth, you may be overpaying for high limits you do not need. If your car is of low value as well, getting collision insurance may be a waste of money.
Make Sure You Are Getting All the Discounts You Qualify For
Most major insurance companies offer over 20 unique car insurance discounts. Some get automatically applied, like if your car has anti-lock brakes or you haven't had an accident in five years. There are others though that won't be applied unless you tell your company. One that gets missed often are those involving a child on a car policy. If your teen driver is a good student, they can qualify for a good student discount which may save you up to 20% on your bill. If your child is at least 100 miles away at school as well, you can qualify for a student-away discount which saves you a good amount on your premium. Other discounts your company may not automatically qualify you for are whether you have an anti-theft device, if you've taken a defensive driving course, or have a VIN stitching.