It amazes me how much disparity exists in automobile insurance premiums. Dealing with bankruptcy clients each day, I gain a lot of experience working with monthly budgets. Each person must give me a copy of his or her current automobile insurance coverage including the amount of the monthly premium. I see very low insurance premiums and I see some that frankly scare me because I wonder what kind of driver they must be to have such high insurance rates. Working with the public has made me aware of one overall theme regarding insurance premiums – – most people do not know they can save money on automobile insurance.
Your automobile insurance company is not going to send you a notice saying, “Oh by the way, we have a program that will save you money each month.” Automobile insurance is one expense that you have to “work” with in order to cut the expense and save money. Even if you have a few tickets or a minor accident on your driving record, it still pays to invest an hour or two researching automobile insurance premiums to save money. Any decrease in your premiums will save you money in the long term. Before you waste another dollar on automobile insurance, consider these three facts about insurance premiums.
1. Insurance company competition saves you money. Because there are so many insurance companies vying for your business, shopping around for the lowest price is worth your time and effort. Look for a website that allows you to compare quotes from multiple insurance companies at one time (i.e. Quote Dash). These services save you time and money by getting the quotes for you to compare side by side.
2. Automobile insurance is not like your cell phone contract. You are not locked into your automobile insurance contract even if you pre-paid coverage. You can cancel your coverage at any time and receive a refund of the unused premium. Auto insurance companies do not require you to sign a two-year contract to save money like cell phone service providers, internet providers or cable companies. If you find a lower insurance premium, you can jump ship at any time during your insurance contract without fear of penalty or losing pre-paid premiums.
3. Insurance rates change throughout the year. There is not a “season” to save money on automobile insurance as with clothing or household goods. Insurance rates are constantly changing and the savvy shopper will keep an eye open for rate decreases throughout the year. Even if you only call your own insurance agent and ask for a lower premium you may be surprised. Changes in your driving record or changes in the company’s overall insurance rates can save you money but you have to ask – – the company will not call you and give you lower rates on its own.
The one risk of using an insurance company you are not familiar with is they may not be there when you need them or the service may not be what you expect. Once you find a low auto insurance rate, check out the company with the Better Business Bureau and do an internet search to check for complaints.