It’s easy to go on cruise control where your car insurance is concerned. This is a payment that you make monthly, bi-annually, or annually without really giving much thought to. Yet if you are like so many others today, you have made an effort in recent months to cut down on your spending and to be more financially responsible. Auto insurance is a regular expense you pay for, and so it does deserve a closer look. In fact, with insurance companies adjusting rates regularly, you may find that you can save a pretty penny on your insurance premium by simply shopping around.
Check Your Coverage Amounts
Each state has its own minimum coverage requirements in place for drivers. If you are trying to save money on your coverage, you will want to ensure that your existing coverage is at these minimum levels. If not, get a quote from your current insurer for coverage at minimum levels. You should keep in mind that coverage is in place to protect you from financial loss in the event of an accident. While bumping coverage down may save you on premium costs now, it may cost you later. For instance, if you have a limit of $25,00 for personal injury coverage to other motorists but get in an accident and personal injury charges are $40,000, that motorist can sue you personal for the difference of $15,000. The amount of coverage you obtain over the state minimum requirements is a personal decision, but it should be considered carefully.
How to Shop for Quotes
Most insurance will look at the same basic factors when it comes to determining your auto premium rate. These factors may include your driving history, your age, your vehicle, and other similar factors. While the factors they look at are the same, how they analyze these factors will vary from company to company. So it is very realistic to find that you get eight different quotes from eight different companies. Because of the difference in how rates are calculated, it makes sense that you would want to shop around as much as possible for coverage. The most convenient and time-saving way to shop for rates is to shop online. Rate comparisons are a great starting point for getting quotes, but you will also want to call a few of the top companies directly to see if you can qualify for extra discounts that rate comparison sites don’t take into account.
You do want to take time today to shop for new rate quotes to see how much money you may be able to save on car insurance. However, you should also make plans to shop for coverage regularly about every nine to twelve months. Insurance companies do change how the analyze the factors that contribute to your premium cost. In addition, some factors that go into calculating rates will vary with time, too. For instance, insurance companies use demographic information such as the vehicle-related crime rate in your zip code and the average age of drivers in your zip code to determine rates, too. This is data that fluctuates with time, and so it does make sense to shop for rates to see if those changes may result in savings to you.
Many people view car insurance premiums as a fixed expense in their budget, but you can see that it really should not be. You should shop for rates today, and then set up a reminder in your planner or smart phone to remind you to shop for rates in the future, too.