What I Learned About Saving Money on Car Insurance

Car insurance is something that everyone has to have no matter what. However, that doesn't mean that anyone should pay more than they need to in order to get quality coverage. As I set out to get the coverage I needed at the lowest price possible, I discovered that sometimes having low priced car insurance means much more than being a good driver.

Check That Credit Score

One of the things that can drastically change how much someone pays for car insurance is their credit score. In the eyes of an insurance company, those who are responsible and pay their bills on time are those with good credit. While this may or may not be true, having bad credit can really cost you on your car insurance rates. Good credit personally saves us about $400 each year on our car insurance rates.

Loyalty Saves

It pays to be loyal and in the case of car insurance it saves. Many insurance companies will allow you to pay a lower rate if you showed that you were loyal to one particular insurance company for a set amount of years. The longer the loyalty, the more the possible discount can be.

My insurance company is proof of this. Because of our continued years of loyalty, last year we received a 10% loyalty discount on our bi-annual renewal. That was some unexpected, but welcomed savings.

Declare Independence

My wife is an insurance agent and I have learned from her that when it comes to auto insurance, it pays to go independent. What I mean by this is going with an independent insurance agent.

Independent insurance agents will shop a client's policy around to many different insurance companies and look for the one with the best coverage and the best price. When going with a captive insurance agent, which can only sell through one insurance company, the client is stuck with whatever they have to offer.

When my wife worked for a captive insurance company, she often came home with stories of how car insurance rates would go up across the board. When her agitated clients would call or stop in, the only way she could lower their rates was by lowering their coverage. Now that she works for an independent agent she can shop the policy around and find a lower price without sacrificing coverages.

According to my wife, she can save her clients an average of 15% by shopping their policy around. While that may not seem like a lot of money, it certainly can add up as the years go by.

Sit Down with Your Agent

In my case, I just ask my wife, but I do so every six months. She knows all the ins and outs and always seems to be able to save us a few bucks by reviewing our coverages and ensuring we are not overpaying. Believe me, if there is any way we can save more on our car insurance that's what I want to do.

Every situation is different so anyone looking to lower their car insurance should sit down with their insurance agent. Ask them to review your policy with you and see if there are some additional ways to save. Bundling, driving courses, multi car discounts and so on. If there is a way to save your agent should be able to help you find it.

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