How To Really Save Money On Car Insurance?

So you just received your auto insurance bill or no premium and one might ask well why is my  insurance premium going up if i’ve never filed a loss for crying out loud i’ve been working from  home for two years and i haven’t even really driven my car but for some reason my insurance  premium has still gone up so just a little bit of information about how insurance premiums and  insurance rates work in most cases it’s based off of pooling systems called risk pooling and  when you are with any insurance company for that matter that operates under a risk pool  it means that you’re also sharing along in the losses with everyone else who’s also  in the wrist pool so although you may not have had losses and you have a perfect driving record  you’ve been the great customer and there’s other people in the risk pool that has not been so great  as you typically if an insurance company takes on additional losses or pays more in claims than they  had ultimately expected then that causes everyone in the pool their insurance premiums to go up  as well and you also find this in other types of insurance like home insurance  or property insurance commercial insurance etc one recommendation that i would have when you’re  looking at maybe exploring other options with your insurance agent or with your insurance company  is give your insurance company a phone call and asks if their or your insurance agent asks are  there any other options that you have at you know your disposal in terms of auto insurance  credits maybe you are you have a new car or maybe you have a security alarm system most cars have  alarm systems in it you want to make sure you’re getting all the appropriate credits on your policy  typically it’s not uncommon for those credits to fall off so if you are receiving

say for instance  an alarm credit on your premium last year and you got an insurance premium increase then it could be  possible that that credit fell off for whatever reason so you just want to verify that those  credits are still on your policy speak with your insurance agent speak with your insurance company  to see if there’s new credit options that you need to supply maybe there’s a documentation for like a  safe driver program or any other documentation that you might have like an employee discount  or any sort of affiliate discount if you’re a member of like triple a most companies might offer  a discount for that or even colleges and universities you could also get a discount  um based off your school et cetera for your insurance premiums making sure that your policy  zip code and your address is up to date in most cases your car insurance will be your premium  will be based off where you are located where your cars are garage so the garaging address  and typically if you’ve moved a lot of people have moved over the past year and a half or so and if  you’ve moved make sure that your garaging address is updated because that could be a case where you  could also receive a premium decrease for instance if you live in a more risky area and you relocate  it to a less risky area then you could see a premium decrease now the caveat to that is that  if you change your garaging address you could also you might experience an increase as well  if you’re moving to a more riskier area so just speak with your insurance agent they can give you  a quote sometimes you can go online depending on which company you’re with and actually do  a preliminary quote yourself as if you were changing your address to see what that premium  change would be on your your policy be very careful of lowering your coverages and i say that  um very with experience and i see a lot of auto insurance claims were people have very low limits  because they wanted to get their insurance premium down as much as possible but then when they have  a auto insurance claim or an auto insurance loss unfortunately they have a an amount of loss that  they their policy won’t respond to because they decided to choose the lower limits so i highly  urge you when you’re considering other options or if you’re considering making changes on your  policy to not decrease your bodily injury limits typically your bodily injury limits on your policy  that is to essentially cover the bodily injury of someone else or people in another car that you  you hit if you were in an accident so if there was one person in the car or people in the car and  you caused an accident and they all got hurt or injured or god forbid they were to pass away  they could sue you for bodily injury or even death because she caused accident your bodily  injury limit on your auto insurance policy covers that type of loss i don’t know about you but  i don’t want to be sued personally and my personal assets and my personal financial finances are at  risk so just just when you’re considering making changes to your policy make sure that your bodily  injury limits depending on where you live um for an example and me being in the insurance  industry i have 250 000 in bodily injury coverage and although i may hopefully may not need that  there could be a situation where i actually need that or that may not even be enough so that’s just  one consideration i’m not advising to get 250 000 for your own policy but just speaking that  what i have on my own policy just consider those higher limits especially if you’re driving pretty  frequently et cetera because you just never know um what could happen when you’re driving another  coverage consideration you want to consider not making changes to or perhaps making changes to if  you don’t have it is the underinsured or uninsured motorist coverage for your particular state this  coverage will basically provide bodily injury or property damage amounts to you if in the event  you were hit by someone else who did not have insurance or who did not have enough insurance  so in cases where and i see it all the time especially when i used to live in florida  a lot of people the stat was about one in every five drivers were underinsured or or uninsured and  so if you were hit by someone that also includes hit and runs so i don’t know if you know anyone  or maybe yourself personally you got back to your car from the grocery store and someone left a note  saying hey i hit your car or maybe they didn’t leave a note and then you just saw the damage  but that underinsured or uninsured motorist coverage covers hit and runs etc and that will  cover you your bodily injury if someone hits you and you have to go to the doctor or the hospital  that coverage will basically cover you and those that are in your your vehicle or your  family members that are with you in that vehicle and then the last coverage option i would say  is your deductible changes um it’s easy to pick a higher deductible and efforts to get  your premium or your rate down and this is really one of the first areas that i see  customers go to to try to lower their rate is to increase their deductible and there’s nothing  wrong with that you can increase your deductible if you choose but just know that in the event of  an accident or loss whatever you choose for your deductible especially if it’s a higher amount  typical amounts is 500 is what your is most auto insurance policies the base deductible  is 500 and what customers and owner owners really have and then higher deductibles are used like a  thousand dollars twenty five hundred dollars in some cases five thousand dollars and if  you do decide to increase your deductible let’s say for instance to twenty five hundred dollars  just know that in the event of a loss you have to exceed that amount of your deductible before the  insurance company will pay the loss and you’re changing your deductible also know that if you  are picking a higher deductible that in most cases your if you have a loan or a lease on your vehicle  most check with your loan company or check with your lease company to just verify what their  requirements are most loans and leases will require that you won’t you can’t exceed 500  or some might even say a thousand just depending on the type of vehicle that you have or the  contract that you have with them so verify with them first i see cases where people will increase  their deductible and then they get a a notice from their loan company saying your insurance company  told us that you just changed your deductible please change it back otherwise we will take  some adverse action and people end up changing it back and then it just it was all for enough!

Read More: Insurance 101 – What Determines the Cost of Auto Insurance?

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Written by Wearisitfrom Team

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