Must Read
Have you been asking yourself, “Am I paying too much for auto insurance?” If so, we are here to help you. If you have seen an increase in your auto insurance premiums, you are not alone. Nationally, auto insurance rates have gone up by 5.9% on average according to S&P Global Market Intelligence. This increase stands to affect over 60 million auto insurance policyholders in the United States.
There are a number of economic as well as societal influences that are behind the increase in auto insurance rates across the country. However, there are some signs that can help you determine whether your auto insurance premiums are too high.
Signs That You May be Paying Too Much for Auto Insurance
It is common for policyholders to find out that they are paying too much for auto insurance many months into their policy.
This is mostly because drivers get comfortable with their insurance provider and stick with the same company for years without bothering to shop for better deals from newer companies.
Some indicators that you are paying too much for auto insurance include:
Your Insurance Company Does Not Offer You Regularly Updated Quotes
Have you received an updated quote from your insurer in the last 6 months?
If not, then you are probably paying too much for auto insurance. This is usually the first and most significant sign that your insurer is charging you more than they should. We recommend checking out other insurers every six months to find better auto insurance deals.
As a general rule, you should review your auto insurance plan every 6 months or even once per coverage period. This is because certain factors such as your driving skills, driving frequency, and vehicle depreciation should lower your premium rates.
If your insurer offers you the same premiums continuously there is a 100% chance that you are paying more for your auto insurance than you would with another insurance company.
We recommend reviewing your policy features and any provisions available to reduce your premiums every 6 months. You can also check competing insurance companies in your area for cheaper rates and save hundreds of dollars on auto insurance premiums.
The Type of Auto Insurance You Need
If you have a car that you only drive a few times a year, but you pay the same premiums as you do for your everyday car, chances are you are paying too much. The frequency of your driving is one of the factors that determine your insurance premium rates. The less you drive, the less you should pay in premiums.
You are Not Bundling Your Home and Auto Insurance Policies
Most insurance companies recommend bundling your insurance policies to save money. If you are paying separate policies for your home and car, it is a sure sign that you are paying too much for auto insurance.
Even where your insurance company offers great discounts on separate policies, you could still save more by bundling your home and auto insurance.
How to Lower Your Auto Insurance Rates
If, like most drivers, you are wondering, “Why am I paying too much in auto insurance?” Here are some tips to reduce your rates.
Compare Rates
Hunt for discounts. Many insurers will offer you massive discounts for good driving, taking a defensive driving course, military membership, and more. Shop around and compare the rates before renewing your policy with your old insurer to find better rates.
Bundle Your Home and Auto Policies
Most insurance companies offer discounts for bundling your home and auto insurance. Take advantage of these discounts and purchase both policies from the same company to significantly reduce your auto premiums.
Raise Your Deductible
If you are a safe driver, consider raising your deductible to lower your premiums. The amount you pay in premiums is inversely proportional to your deductible. The more your deductible, the less you pay in auto insurance premiums.
Update Your Policy Twice Annually
We recommend updating your insurance policy bi-annually to learn about the best rates your insurer can offer. Failure to update your insurance policy frequently usually results in paying the same premiums you started with which is quite expensive in the long run.
Drop Any Coverage You Do Not Need
If your car has aged since you bought it, or you no longer need to drive it as much for any reason, you might not need all the auto coverage in your current policy.
Look over your policy to see exactly what damages your policy covers and have your insurer drop any coverage that you no longer need. This should lower your premiums.
Summary
There are many factors that influence how much you pay for auto insurance. However, the truth is, your insurer should regularly update your policy every 6 months and lower your premiums if you are a low-risk driver.
If you suspect that you might be paying too much in auto insurance, get in touch with an expert and find out how to get lower rates.
