Most people are quite content to keep renewing with their current insurers for years because companies utilize many car insurance secrets that make sure policyholders don’t leave. Policyholders feel privileged when they get measly five percent savings after being a loyal customer for five years with the company. What they don’t realize is that they are losing fifty percent savings somewhere else because they never check prices. We will reveal a few secrets to cheap car insurance like this below.
You may be missing out on simple auto insurance tricks like checking for the best prices and comparing quotes while you look at complicated ways of saving money.
You will probably discover in this post that you have already known all these auto insurance tips and tricks but never even thought about using them to your advantage. The secret to tricks is that the simplest ones are usually the most effective. It is shocking that most policyholders live their lives unaware of even the simplest tricks to get cheap car insurance.
Getting small discounts here and there is great. However, you may start with extortionately high premiums that those savings may mean nothing. Standard rates from another firm may be already lower than your existing auto insurer’s rates. That is even before they apply their own discounts.
Therefore, you should look at the end result. One of the most used car insurance tricks known to insurers is that people love these small discounts and stop complaining afterwards. Companies love to show that they are offering savings. You have a reason to be happy only if those savings stand well when compared to the rest of the quotations. Otherwise they persuade you easily with some sales tricks.
Don’t be tricked by simple sales tactics. Remember, a cheap policy is only cheap if it is hard to find the same coverage anywhere else at a similar price.
10 Secrets to Cheap Car Insurance
- Over 70% of policies are sold by one of the 10 largest auto insurance companies in the US like State Farm, Allstate, Progressive and GEICO. So, if anyone suggests that cheap car insurance companies are no good you can lough out loud because it is likely that one of these gigantic insurers is going to be offering that cheap quote. Think about it for a second why these companies are so big and popular and how can they corner the market if they aren’t offering affordable policies? You probably have heard such names so many times and will have no objection to be insured by any of them. Even between them and for a basic liabilities policy there could be hundreds of dollars differences in premium. These differences would be heightened in big cities, for high risk and young drivers.
- Over 70% of policies are for full coverage. So, if you are thinking to just buy a liability only policy think again. Most people buy full coverage because most companies offer cheap full coverage car insurance You should always try to get as much coverage as possible for the money you allocated to insure your automobile.
- Teenage drivers are 4 times more likely to get involved in a fatal crash. So, think out of the box if you want the cheapest car insurance for young drivers and look into pay as you drive insurance. Let’s be realistic because they aren’t going to offer you low rates until you offer them some solid reasons like permission to monitor your driving.
- Auto-renewal option is the biggest car insurance secret insurers have. They make it look like they are doing you a favor by making sure that your policy is renewed automatically. It is true that this a step to ensure you remain insured. However, you shouldn’t entirely count on that because your payment details may change in time like you may get a new car issued to replace the one on record. So, you should always make sure your policy is renewed and renewed with a company you choose, rather than relying on auto-renewal with the current insurer.
- Shop until you drop. It is just a saying. It takes about an hour to shop around and get car insurance coverage. And shopping for the best deals is the biggest auto insurance trick you have. If you keep renewing year after year without checking for alternative quotes you can easily end up paying thousands and thousands of dollars more in that time for insuring your vehicles.
- Loyalty hardly ever pays. Don’t be naïve to think that your insurer will look after your interest. They have shareholders to think about first. You may feel lucky that you got 5% loyalty discount. What you don’t know is that you are giving up 50% savings somewhere else.
- Many other companies will pay you more than the loyalty discount you get from your current insurer to switch. So, once again, loyalty discount isn’t a big deal.
- Your driving records are public knowledge and follow you wherever you go. Many people reason in their head that they have built a record with their current insurer and that is why they are getting good deals. If they were to switch to another company they would start all over again. It is total nonsense because every company you go for a quote can see all your records and that is why they offer you high or low rates.
- Did you know that many people checked for cheaper car insurance prices out of curiosity and switched after finding out how cheap their premium can go. So, don’t be afraid of getting a few quotes online and comparing them with your current renewal terms. You are totally free to stay with your current broker or insurer in any case. So, you have nothing to lose.
- One last auto insurance secret is to get at least 5 quotes and compare them. Why it is important is that you may be suspicious to see one company offering very low rates. However, your mind will rest when you see several other companies are offering similarly cheap premium quotes. Then, you will understand that it isn’t them but it is your current insurer.
When buying anything you should first shop around before paying too much attention to what the salesperson is saying. Get a few quotes and see where they are stacking up. You could really save money in this highly competitive auto insurance market and you do not have to compromise on the coverage or quality of your insurer.