No one wants to pay more than they have to for car insurance, but how do you know if your monthly premiums are too expensive? That can be a hard question to answer unless you take a nationwide poll, but there are multiple ways you can pay less on your car insurance right now.
How to Know You’re Overpaying for Car Insurance
The average cost of car insurance continues to rise every year, which may make you think you’re paying close to the market rate. To see if this is the case, ask yourself the following.
When Was The Last Time I Compared Car Insurance Quotes Online?
Most drivers don’t compare car insurance quotes online frequently or at all. That’s because there are so many barriers to the process. First, you need to find a car insurance company in your city. Then, you need to call each company for a quote and compare their prices.
Websites like Cheap Insurance populate the latest quotes from multiple insurers and compare them in seconds. You’ll instantly know what rates are the cheapest and if you’re overpaying. Plus, you’ll be able to connect with local insurance companies that you weren’t even aware of.
How Long Has It Been Since I Switched Car Insurance Companies?
Car insurance companies don’t reward you for your loyalty. In fact, switching every two to three years is an effective way to spend less on car insurance. Most insurers will offer discounts to new customers, and switching isn’t time-consuming or difficult, so you have nothing to lose.
Keep in mind that it’s better to switch before your current policy expires. Insurance companies view uninsured drivers as a bigger risk and may charge you more when you sign up. You can switch companies at any time, but it’s better to change during the last month of your policy.
Am I Paying For More Insurance Coverage Than I Need (or Want)?
Maybe you used to take more long road trips in the past, or you currently work from home and don’t play on going back to the office. If you’re driving less than you did in prior years, you’re definitely paying more than you need to because your rate is calculated based on your mileage.
You probably don’t need comprehensive car insurance if you use your vehicle once a week, so start looking into cheaper policies. Liability insurance is more than enough for most city drivers. But you can always buy more or less insurance in the future once your circumstances change.
Are You Taking Advantage of All The Discounts You’re Eligible For?
Car insurance companies will offer discounts to safe drivers. For example, you can find good driving and accident-free discounts at local and popular insurance companies. Teens and seniors can take driver education training to lower their rates and decrease negligent driving.
Discounts vary based on demographics, equipment, and location, so the same insurance company may offer better rates depending on your state. Always ask your current insurer or other companies whether discounts apply to you so you don’t switch under false pretenses.
Have You Changed Your Relationship Status or Your Job Recently?
Married couples can potentially lower their premiums, as insurers see married couples as more responsible drivers. Unfortunately, the stats aren’t the strongest, but insurers still favor married couples over singles. Consider combining policies with your spouse if you want to save money.
If you changed jobs recently, ask your employer if you can get insurance directly from them as a benefit. Some insurers will decrease your premiums if you’re backed by another company. You can also get a discount if you’re a part of a professional or alumni group in some cases.