Summary
- Keep on top of the auto insurance market every six months to make sure you are not overpaying and to help you save money
- You can generally switch auto insurance companies at any time if you give the proper notice
- You can now compare auto insurance rates through Credit Sesame
Whether it’s a lizard or a person dressed in khakis, it seems like there’s always someone trying to tell you that you’re paying too much for car insurance. Unfortunately, this is not always just a marketing ploy to sign up for their products. Auto insurance companies may raise premiums every six months, so you really could be overpaying.
How do you know if you’re paying too much?
Your current provider certainly won’t go out of their way to tell you that you’re paying too much, so it’s important to put yourself in the driver’s seat (pun intended) and do your own research.
One effective form of research is to shop around for different rates. You can now do this on Credit Sesame. Just answer a few quick questions and you’ll see what kind of rates you qualify for with different providers.
You can switch at anytime
Don’t worry about breaking contracts or penalties. Unlike your cable bill or your gym, you aren’t always locked into a contract with your insurance company. Typically, you can change at any time if you give them enough notice. Once again, you’re in the driver’s seat. If you shop around and find a lower premium, you typically have two options:
If you like your current insurer, see if they can match—or beat—the competitive rates.
If they aren’t willing to work with you, you have the power to switch.
Either way, it’s goodbye to overpaying and hello to more cash in your pocket.
Other ways to save
Just ask: In addition to shopping around, don’t hesitate to ask your insurance company, or a potential insurance company that you are thinking about switching to, about providing better rates. For example: If you bundle your car insurance with homeowner’s or renter’s insurance, the insurance company may offer a lower premium for each. If you are going to need a policy for your spouse and his/her car, you may be able to get a better rate for each.
Pay upfront: If you can afford to pay the full year upfront, this can be a win-win for you and the insurance company. For the insurance company, it’s guaranteed payment and saves them time in monthly renewals. The win for you is saving money and avoiding a monthly payment.
Ask about age and life events: You usually pay more for car insurance when you are younger since you are considered to have a lack of experience. However, one of the benefits of getting older is that your auto insurance costs often decrease. Other major life events, like getting married or welcoming a new baby and purchasing a minivan, can also help you save money on insurance.
Defensive driving: Taking a defensive driving class in high school or a mature defensive driving course later in life can reduce points on your license as well as lower auto insurance costs. Plus, the course will make you feel more confident and more in control when you’re behind the wheel.
