When the time arrives to renew an auto insurance policy, it’s also the perfect occasion for re-evaluating how much your car insurance is costing you. If you own or drive a car, some form of auto insurance is mandatory, but overpaying is not.
A bit of comparative shopping can help you verify if you are getting your money’s worth and if it might be the right time for switching insurance companies to get a better deal. Before leaping to a new provider, it’s good to know the dos and don’ts of switching a car insurance policy and how to navigate changing your provider.
Begin with what you should avoid doing to ensure you have the auto insurance coverage you truly need.
Don’t attempt to save money by reducing auto insurance coverage
Even if you are counting your spare change to get to your next paycheck, don’t reduce your coverage to save some extra cash. While a coverage reduction can lower your monthly premium, you will place yourself at much greater risk if you are involved in a car accident. You may end up paying a deductible or damages you can’t afford.
Don’t change car insurance companies too often
Before switching every time you renew, check out if your provider offers loyalty discounts. If you switch too often, you may be missing out on discounts, and you will not be establishing any kind of track record or history with a single insurance provider.
There are a few things that you can do to save money that can be applied when switching to a new provider.
Do take into account any major life changes you have made since purchasing your last car insurance policy
If you have changed where you reside, married, or welcomed children, your finances and your needs will have changed. You may have retired and drive less, or you may have changed the type of vehicle you are driving.
Whenever you make a life change, consider switching car insurance providers because you may find a new company that meets your needs better and at a more attractive cost.
Do reduce the extras if you need to save some money
While you don’t want to reduce your coverage, you can remove some of the extras to save on expenses. These might include roadside assistance, accident forgiveness, or the option of a new vehicle replacement.
Review each of the extra options that you have included in your previous policy. You may be able to do without a car rental in the event of an accident to lower your monthly premium. While maintaining collision, liability, or even comprehensive coverage, focus on the extras if you want to revamp your auto insurance coverage.
There are ways to save money on auto insurance coverage, but continuously switching providers can do you more harm than good in the long term. Reducing your liability coverage is never something you want to consider because the repercussions in the event of an accident can be financially devastating.
Do engage in comparative shopping annually and request auto insurance quotes, review what your needs are, and any life changes that have taken place since you last stipulated a policy. Finally, talk to your current provider before switching to verify if you are eligible for any substantial discounts if you don’t switch.