When it is already hard to stay within the budget it can be disheartening to receive higher car insurance renewal quotes. In these situations, people can react hastily and start chopping and changing their coverage. Some can totally drop it as well. Before taking such drastic actions, there are a few things you can do to lower auto insurance rates.
Policies provide valuable protection for many unexpected occurrences from accidents to storms and third-party injuries and you wouldn’t want to give them up easily. There won’t be any room to play around with minimum liability coverage anyway. You cannot reduce the limits and there is no deductible to adjust the premium. The only option might be to see if the broker missed anything.
1. Can the Current Company Offer any Further Discount?
It is always a good idea to give them a call and ask if there is any chance of some price reductions. They can only say no. In any case, you should get at least three more automobile insurance quotes to compare with rates offered. Each applies different weights on the factors affecting the premiums. So, it will not be surprising at all to receive as much as 50% cheaper prices from rivals. Then, you might actually be glad that you were pushed to check for better rates.
2. Are You Driving Less to Deserve Low Mileage Discounts?
When you have a full coverage, there can be a few areas to look for savings. First of all, you should check if you are driving less miles than you have specified last time. You may be working couple of days a week from home or preferring the subway lately. This will reduce the costs depending on how little you are traveling.
3. Is It Still Worth Buying Full Coverage for your Car?
Next, you should look at the open market value of the automobile. Vehicles drop their value considerably with every year passing that at some point it may even be better not to insure them. There is no point in wasting money when you won’t receive much even in a worst-case scenario. You may just buy a liability only policy and be done with it.
4. Can You Save Money by Increasing Deductibles?
A good way of keeping the level of cover you prefer and still cutting the costs is to increase deductibles. Normally, when they are up rates come down. You are practically agreeing to pay a larger sum out of pocket each time you make a claim and the reward for it is to spend less money now. In a way, it is trade off and only time will tell its success.
5. There May Be Other Discounts You Can Qualify for
You shouldn’t accept a high vehicle insurance renewal quote without a good fight. There are several other ways of reducing overall costs. First of all, you may want to buy a multicar policy for all your automobiles. Another option is to bundle home and auto. Whichever way it is done, you can save about 10% for each additional business you bring over to a current carrier.
Another alternative is to check if a membership with any organization will result in cheaper prices. If necessary, you can join the ones that will enable you to get them. For young drivers, good-student discounts are good ways of cutting the costs. Military affiliation offers another avenue for improved prices.
Actually, you can ask why the renewal quote went up. They may point you in the right direction. For example, some companies may charge higher rates for policyholders with bad credit. By finding another auto insurer that does not care much about credit history you can cut the costs as much as 20%. The worst thing you can do is not to do anything and put up with the hikes while you are already struggling to pay the premium.
It is harder to take higher than expected charges from a current carrier than receiving expensive terms from others you don’t know. However, the earlier you realize that it is just a business for them the more you could benefit from the competitive car insurance market in the US. You tie yourself up when you start thinking that you should be loyal to them for whatever reason.