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A Simple Guide to Insurance Savings

June 18, 2013

Save money on car insurance quotesSaving money on insurance is something that is discussed so much that many people aren’t certain what really works and what is a myth. Saving on your car insurance is possible, and it is simple. These tried and true steps can reduce your car insurance premiums quickly.

Step One: Shop Around

Without a doubt, the best way to save on insurance is to shop around and compare insurance quotes. Although many people may see it as simply a sales pitch when an insurance company invites them to quote, the truth is that it really can save you money. One of the best ways to do this without feeling pressured to buy is to quote from an independent source like InsuranceHotline.com. Here’s why shopping around can save you money.

Insurance companies make their own rates. This means that what you are being charged at one company isn’t always what another company would charge.

Different discounts may be available. Another insurance company might be able to offer you more or different discounts than you are currently getting.

Some insurance companies specialize. Some insurance companies are more competitive when it comes to a specific type of driver or policy. Some might have the best rates on motorcycle insurance, while others might offer better rates to people with tickets or accidents.

Step Two: Look at Your Policy

If you’ve decided to stay where you are, or even when you are comparing rates, taking a good look at your policy can save you a lot of money. You should be looking for things that you really don’t need – or things that can be adjusted to save money. Here’s what to look for:

Your deductible – can it be higher? Most people are afraid to raise the deductible, but the truth is that it can save money, and you will only need to worry about that deductible if you are in an at-fault accident. The longer you go accident free with a high deductible, the more you save.

Your optional coverages – do you need everything you have? Are you paying for rental car coverage even though you never travel? Do you have roadside assistance elsewhere and don’t need t pay for it on your insurance? Dropping the options you don’t need adds up to big savings.

Accuracy – is everything correct? Look for things that are incorrect that could be costing you. A vehicle that is listed as being used for commuting but is actually only being used on the weekends is likely costing you too much.

Step Three: Combine Whenever You Can

You probably carry a number of different insurance policies, and combining them can actually save you a lot of money. Many people think multi-policy discounts are just for those with more than one car. The truth is that many insurance companies offer a discount when you take out just about any other policy with them. Among the policies you can combine to save:

  • Homeowners and tenant insurance
  • Life insurance
  • RV insurance
  • Boat insurance
  • Motorcycle insurance

Save on all your insurance. What many people don’t realize about combining these policies is that it’s not just the auto insurance you could save on. Insurance companies will usually also deduct a percentage from the other policies as well. This isn’t true of all policies, but in most cases it will affect your homeowners insurance and possible RV, boat, or motorcycle insurance. Combining policies saves you money on your overall insurance costs.

Shop Other Policies Around. When you’re shopping around for car insurance quotes, it’s a good idea to ask those companies you are considering to also quote any other insurance policies you currently have. This will tell you how much you could save overall if you switched everything to that company.

The Bottom Line On Insurance Savings

If you want to save on insurance, you should follow the first two steps regularly; once a year at least on renewal, and make sure to follow the third step right away – and every time you add a policy. Think of this three-step guide as an ongoing routine that will ensure you are never paying too much for your car insurance. It doesn’t take a lot of time, but if you make it a habit, you’ll keep your rates low for the long run.

  • Al Clements

    I recently had my auto and home renewal come up and was not happy with the small increase in my rates. I used this Site for lower rates and came up with four possibilities.I am from up north, the Soo to be precise, and ended up using a broker from London. She worked by phone and Internet with me to set up both policies to my liking with better coverage, and, I also saved $191 on my car, plus $161 on my home insurance. Please remember, I did not get less coverage just a different underwriter. When I went to sign my cancellation notice for my expiring policies (my present broker’s office is just minutes from my home) I asked if he worked with the underwriter I was now getting my insurance from? His answer – yes, but he had not reviewed my policies. He apologized but said he had just been too busy. Well it cost him my business. In conclusion, shop around and review your policies as your needs change, your broker won’t do it for you.