How to save on car insurance & What to know! About auto insurance?
Do you need to wait for your current policy to expire before you can switch over to a new insurance provider?
the answer is no right it doesn’t matter if you just signed on you know for a renewal maybe two months ago and you’ve got 10 more months ago you can switch on ever you want and that was good news for me because I had to switch my condo policy right you know I lived in it for about two and a half years but now that I rent it out I don’t need the same level of coverage and protection as if I lived in it so I was able to switch that policy over save a couple of hundred dollars and I thought I didn’t have to wait for my current policy to expire so it was very very nice and convenient not having to do that now the next question I had was
Isn’t it always better just to stay with your insurance company for a long time?
so you can get their discounts and apparently that’s not true right in fact it’s kind of the opposite right apparently insurance companies you if you’re someone that’s been there for let’s say 20 25 years right they kind of look at that policy and say like well they’re not going anywhere so even if Isteadily increase certain premiums every single year they’re not going to go anywhere and that’s just easy money right so it doesn’t always kind of work out in your favor to stay with the same place for a long time brand loyalty and car insurance don’t necessarily go together not always at least another way of looking at this is this way right if you’re an insurance company and you want new business well you may be giving discounts to new people and not those that have been there you know again 25 30 years and you have no real concern that they’re gonna leave so a lot of times insurance companies aren’t going to give those discounts to new clients and you’re gonna be benefiting from shopping around and making sure hey if there’s a discount out there take advantage of it if you’re a new member you’re gonna get that new discount so always make sure that you’re doing the best you can to make sure you’re not overpaying for your policy premium now the next question wasn’t really a question directly but I’d asked you know talk about
full coverage versus liability?
only and he pretty much put it this way it’s pretty simple if you’ve got a car loan you’re going to need full coverage not only for your protection but for the lenders protection right the lien holder is going to want to make sure that their asset is fully protected and that makes sense or is if your car is paid off now you have the choice of whether or not you and go liability or full coverage and again this is pretty simple to write if you’re if your car’s not worth very much it’s only worth maybe $2,000 you’ll probably want to go with the liability coverage and use that monthly savings to offset any total loss that you could experience in the future and on the other hand if your car’s paid off but it’s still worth let’s say like 15 20 thousand dollars you’re probably going to want to protect that as well with full coverage so again it’s not really a matter of you know how am I going to save the most money when it comes to full coverage versa liability it’s about how am i protected most efficiently another question might ask Dale was how long do your accidents and your tickets stay on your driving record as far as insurance is concerned and I was surprised to find out that it’s different from state to state so for me in Texas it’s gonna be different than Dale who lives in Arizona or any other viewer who lives in a different state for me apparently it’s gonna be aboutthree years which is actually kind of convenient because that means that my one speeding ticket that I’ve ever had is gonna fall off in about 45 days and once that happens I’ll be able to switch over the auto policy as well and save another couple hundred dollars so you know if you’ve got anything as far as like a bad driving record and it’s about to fall off take advantage of it once that time has expired because that really really does a number on your policy premium and there’s no point in overpaying if you don’t have to all right the next question I asked him was how often should you shop around for a new policy quote and he put it this way he himself pretty much every single time this policy comes up for renewal is going to find out if there’s a better deal out there and now maybe that’s overkill but because he works in the industry he knows that he’s probably doing the best he can for himself by doing that but even if you don’t want to go necessarily that route every couple of years make sure you’re going out there doing what you can to find out if there’s a better provider or a better cost or hey maybe you keep the same dollar amount for your policy premium but you can get more coverage for that same dollar amount either way do your best every couple years to shop around and find out if there’s a better deal for you now the next question that I’ve asked him was :
At what age do you get your first discount?
and it’s at 25 years old so if you’re 24 and a half and you think your car insurance is a little bit expensive definitely know that relief is on the way after that there’s a bunch of other factors that come into play like when you get married when you bundle and we’re going to talk about that here in a second you know your driving record all of that stuff comes into play more so than your age later on down the road but once you hit 25 just know that there should be a discount coming now the last question that I had asked him :
was why use an insurance broker as opposed to just going to these companies directly?
and it really comes down to convenience and discounts right from a convenience standpoint right an insurance broker is someone that doesn’t necessarily work with one company they work with a whole bunch of different insurance companies across all 50 states and they say look I’ve had a client that needs this level of protection who’s gonna give me what deal and you’re not probably to get the best deal that is offered right and that’s very convenient in addition to that there’s discounts right you know that brogre may get a discount from going through X company and if they get that discount that savings doesn’t be passed along to you so would you rather take the time to get individual quotes from let’s say Allstate State Farm Geico progressive Liberty Mutual would you rather have to take the time and get quotes from all of them and pay extra No so that’s what an insurance broker is for and that’s all pretty much new to me we kind of had a similar system back at the credit union but it wasn’t quite as diverse but either way take advantage of an insurance broker because it just makes things easier okay now I want to start talking about some things it will actually save you some money on your policy and so let’s just start off with a few things that I think are really really simple number one I had asked him to talk about
six-month policies vs 12-month policies?
and this was new information to me that I really want to share always go with a 12 month policy if you can and the reason being is that pretty much every time your policy comes up for renewal where your insurance provider has an option to increase your premium right so if you have an option to renew every six month well that means that the insurance company has two times every single year to increase your premium well if you’ve only got a 12 month policy they can only do that one time per year so again the less opportunities you give them to increase your premium the better it is for you so yeah always go for the longer term policy next let’s talk about bundling and this may not apply to everyone but it’s really really simple if you do have multiple assets you can tie into one policy do it because you are going to get the discount so for me as a homeowner you know it made sense to tie in my condo and my vehicle under one policy and I wouldn’t have gotten those discounts if I would have kept them at separate companies perhaps you’re a renter and you want to tie in your renters policy to your auto policy that’s a discount maybe you’ve got life insurance pretty much everything you can do to bundle together is going to save you money in the long run that’s probably nothing new but a lot of people don’t always take advantage of that another thing that is car insurance specific is if you are someone that doesn’t put a whole lot of miles on your car each year definitely let the insurance company know right there is a discount :
Does less driving equal More Saving?
for that so if you work from home or maybe you just live really really close to work and you don’t put a whole lot of miles on your let the insurance company knows because that’s just another discount that you can take advantage of next another discount that I took advantage of when I switched over my policies was :
if you have the ability to pay for your full year?
in the full right you’re going to get a discount I think for me it was about a 10% discount it may have been a little bit lesson that I can’t quite remember but either way if you’ve got an emergency fund covered if you’ve got money in the savings if you’re not living paycheck to paycheck and you can afford to kind of pay for your insurance in a kind of one-year chunk do it because that’s just another amount of savings that you can add on top of all the other savings you’ve already accrued now the last thing I want to mention is something similar kind of to bundling right your home and your auto right you know if you’ve got multiple people on your policy you’re gonna get discounts for that as well so even though I and my girlfriend aren’t married by us being on the same policy we’re going to get discounts so if you live with your girlfriend and it’s a relationship where you know you don’t mind necessarily being on each
other’s policies I think there’s actually extra protection that goes along with that definitely take advantage of that well because it’s just again another savings and I’m all about getting all the savings I can so all in all those are just some really really quick things about car insurance how to save money what you need to know.
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