Understanding how car insurance works can help you can save on your premiums. It may take a little bit of extra time but asking the right questions of the right people is the best way to make sure that you’re not overpaying for insurance. Here are 5 quick tips to help you save on car insurance and how to shop and what to ask so you can save money on your premiums:
- Call an insurance broker and shop around – an insurance broker will be able to shop multiple insurance markets to find you the best rate and best coverage. Many insurance providers can sell only one type of policy; that is, they have only one insurance market. They have no other options and no choices for you. If your insurance provider can’t give you multiple quotes, call an insurance broker to make sure you are getting the best rate.
- Insure your car and home with the same insurance provider — you may be eligible for a discount called the “Multi-line discount.” Insurance companies offer this discount when your auto and property insurance are combined. Some insurance brokers will even give you the discount if you promise to bring the other line over when it is up for renewal.
- Insure all your cars with the same provider – some insurance companies offer a discount for customers who insure more than one car.
- Increase your deductible – you can often get a lower monthly premium if you are willing to pay a higher deductible. If you can afford a higher deductible you should consider increasing it. The higher your deductible is, the lower your insurance premium will be.
- Make sure you are getting all the discounts that you have earned. There are lots of discounts available. Make sure you are getting credit for all that you qualify for. Some common discounts include: multi-policy discount, multi-vehicle discount, conviction-free discount, autonomous emergency braking (AEB) discount, short commute discount, loyalty discount, full coverage discount, away at school discount, green or hybrid vehicles discount, and single pay discount. Click here to learn more about these discounts.