What to Do after High Auto Insurance Renewal Quotes?

Receiving higher car insurance renewal quotes can be discouraging, especially when you’re already struggling to stick to your budget. Automobile insurance policies offer crucial protection against unforeseen events such as accidents, storms, and third-party injuries. before making impulsive changes or dropping valuable coverage, there are a few steps you can take to see if you can lower your premium enough.

There may be a few things you can do in the long run but your priority is probably to find a way to reduce your premium at this renewal. Here are some of the solutions that can make immediate impact on your vehicle insurance costs;

  1. Ask why the renewal quote went up: They may point you in the right direction. For example, it may be due to deteriorating credit score. Then, you may start looking for companies that care less about credit score now and try to get back some of the points you lost in the long run.
  2. Review your coverage: Take a closer look at your existing car insurance coverage and assess whether you need all the features and add-ons included in your policy. Sometimes, certain coverage options may no longer be necessary or could be adjusted to reduce premiums. This can even be removing a driver who doesn’t live with you or doesn’t drive your car anymore.
  3. Look for immediate saving opportunities: Things like paying your premium in full, setting up EFT if you need to pay in installments, committing to your renewal earlier can save you enough for now. Some companies offer discounts for switching to them too.
  4. Increase deductibles: Consider raising the deductible on your policy. A higher deductible means you’ll have to pay more out of pocket in the event of a claim, but it can help lower automobile insurance. Make sure you choose a deductible amount you can comfortably afford if you need to file a claim.
  5. Inquire about defensive driving courses: Taking a driving course can be a good solution if you can qualify for a discount. You may be able to arrange an approved course and pass before your renewal date to get the discount. This may be a good option, if your premium went up because you are over 65.
  6. Consider usage-based insurance: Some companies offer pay-as-you-go insurance programs. These programs track your driving habits, such as mileage, speed, and braking, using telematics devices or mobile apps. If you’re a safe driver with low mileage, this type of policy can result in lower premiums.
  7. Review your annual mileage: If your annual mileage has decreased significantly, such as due to changes in commuting habits or working from home, inform your agent or provider. Lower mileage can sometimes lead to reduced premiums. You might need to monitor your mileage with an app or a telematic device or you might have to switch to a pay-per-mile policy.
  8. Look into bundling opportunities: Sometimes, bundling your auto insurance with homeowners or renters insurance can lead to discounts. Check if combining your policies with the same insurer can result in cost savings. Start with your home and auto insurers and see if either of them will offer enough savings.
  9. Shop around: Start by obtaining quotes from multiple vehicle insurance providers. Reach out to agents, brokers or use online comparison tools to compare prices and coverage options. This will give you a better idea of what other insurers are offering and if there are better deals available.
  10. Discuss with your current insurer: If you cannot find a better offer you can still go back to your existing provider and express your concerns about the high renewal quote. Inquire if there are any ways to lower your premium, such as adjusting your coverage or qualifying for additional discounts. They may be willing to work with you to find a solution. For example, they may offer you a small discount if you agree to renew the policy on the spot, especially if you still have a few days to the renewal date.

You may need to prioritize what is important at this renewal. If you are in a tight spot and your priority is to save money now, keep in mind that you can reverse any drastic measures you have taken to achieve the money saving goal at a later date. Auto insurance companies offer plenty of flexibility in terms of making adjustments to your coverage even mid-policy. For example, you can drop your child away at college for now and add them back when they are home for school breaks.