How to Lower Car Insurance Premiums for the Same Cover?

Have you had this nagging feeling that you are paying too much to insure your automobiles? What are you going to do about it? Are you going to find out about the ways to lower auto insurance premiums? Many people are aware of high premiums but do nothing about it. Nothing is what your vehicle insurer wants you to do. They have already tied you down with auto renewal instructions and they tell you to do nothing as they will take care of it for you. What it really means is that they will keep charging you the usual high rates and take the money out of your account for your convenience.

Since you are doing nothing they will do nothing as well. They will not look to see if you can get better rates or if they can offer one of their better policy packages. As long as policyholders are not complaining there is no need to do anything. Besides, they will be losing out on profits if they were to find out the best deals for you and reduce your premium.

How to Lower Auto Insurance Premiums?

driver with attitudeYou hear companies claiming they can offer you better deals all the time. You probably think that they would say it to draw your attention so that you get quotes from them. It is true that not all of those companies can actually offer inexpensive auto insurance quotes. Nonetheless, you may be shooting yourself in the foot by being too sceptical. Here are a few reasons why you can get reduced car insurance prices.

  1. Loyal Policyholders Are Kept at Old Rates

The longer you are with the same insurer the higher the chance of saving money especially if you have not been getting alternative quotes. Companies constantly update their rates and discount schemes according to competition and changing underwriting criteria. However, large number of insurers don’t upgrade the existing policyholders to their new rates or better policy packages. You would think that loyal policyholders would receive lower vehicle insurance quotes at renewals. But this may not be the case even though  they may now be qualifying for a few more discounts.

  1. Your Current Insurer May Be Penalizing You

Auto Insurers can raise rates up because of many things that they don’t like about their policyholders. Larger companies are more likely to be choosy in types of risks they will accept. You may be penalized for being young, having a teenage listed driver, driving a car that is not typical sedan, living in a high risk zip code, having a traffic violation or a claim in your records and having low credit score. These surcharges work against you while discounts work in your favour. Your insurer can be more expensive if they don’t offer you the discounts you deserve and apply surcharges on top of it.

  1. Each Company Decides Own Prices in Free Market Economy

Every underwriter has a unique way of evaluating risk and calculating premiums. While one may be very cautious with teenage drivers the other can see them as customers for years. A company with a long term view can be comfortable with taking a loss for the first or second year. They will know that they will recoup it later as those youngsters become low risk mature drivers and pay premiums for years. There are hundreds of reasons why company A may be happy to offer you half the price you are paying right now for the exact same coverage. And those companies can be as good as or even better than your current insurer.

How to Lower Car Insurance Rates?

It may come to you as a surprise but it is all about the attitude. You may have already qualified for 50% discounts as discussed above and not know it. How are you supposed to know if you don’t check for alternative quotes? It is like expecting to win the lottery without buying a ticket. So, here is how to bring your car insurance cost down.

  1. Don’t be Quick to Reject

Being one of those motorists who believe that their insurer is the best and cheapest doesn’t help you. You need to look at other providers, get quotes from them and look at their policy offerings. The same applies to your broker as well. Talk to another broker in your area and see how good he/she is in finding the best deal. Alternatively, you can go online and check the quotes on your own.

Don’t reject the idea that you can halve your costs without giving up on essential coverage. Get quotes and see it for yourself.

  1. Ask

Ask why your brother/friend/colleague is paying less for automobile insurance. Ask your agent/broker if you can get further discounts. Ask your insurer if there is anything else they can do to reduce your rates. Ask why you don’t get the same prices that new customers get. You should not worry that you will offend or bother anyone. First of all, it is their job to explain it to you. And secondly, it is your right to know.

  1. Loyalty to a Point

Loyalty is a great word and generally appreciated. However, it is up to you to test if your loyalty is appreciated and be prepared to walk out the door if not. Blind loyalty doesn’t pay. It doesn’t make sense to stay with one company because your parents and siblings are insured by the same provider. You should only be loyal to an insurer if they offer you the best customer service, quickest claim settlements and most competitive premiums.

  1. Be Prepared to Spare Time

Learning how to reduce auto insurance rates, advantages and shortcomings of your policy, alternative providers and quotes takes time. It is a lot easier and quicker to get one quote and go with it. However, it would be like buying a lottery ticket where you have no idea if you have picked the winner. Most people get about 3 to 5 insurance quotes before they make their mind. If you go online you can get 5 quotes in under an hour and pick the best policy within couple of hours.

Don’t Believe You Can Have Cheaper Car Insurance?

There is no guarantee that you will save as much as 50%. However, there are a few examples of people who have already done just that. Some of them halved their premiums without even changing their current insurer. If you don’t believe us read it here.

Share on Pinterest