Insurance is one of those services that can fall between the cracks. You probably did your research when you purchased your vehicle or got married or some other significant life change, and you’ve been on auto-pay ever since.
Maybe it seems too much of a hassle to consider how to switch car insurance providers. However, this hassle is worth it if you can save on your monthly premium or improve your coverage.
It’s time to shake up your routine and compare insurance options. Read on to find out how to save big on your car insurance.
Review Your Current Auto Insurance Policy
Reviewing your current policy will give you your basic points of comparison. Read the fine print of your current policy. It`s worth taking the time to understand the details.
Write down key information like your monthly premium, deductible, and max out of pocket. Working with actual numbers clarifies what you can improve.
Figure out what parts of your current policy you must have and which ones you could cut. If you don’t understand what you have, you won’t be able to compare new policies. Instead, you might end up comparing apples to oranges.
Note whether you receive any discounts for being a long-term policyholder or having continuous coverage. If you switch providers, you`ll lose these perks, even if you return to the company a few years later.
Go Online to Compare Insurance Options
Search the website for any discounts that you qualify to receive. Look at what incentives your insurance provider is offering new clients. Look for incentives you previously didn`t qualify for.
Use an online comparison tool. The internet is a good place to find information, especially when comparing financial options.
Check reviews and consumer forums once you find a company and policy you like. Are they a reliable company according to their customers? Do they provide good customer service?
Make notes of estimated costs. Write down premiums, deductibles, and caps. Write down the pros and cons of switching. Writing an old-fashioned pros-and-cons chart might alert you to something you missed.
Speak to Actual Insurance Agents
Picking up the phone and talking to an actual person seems old school, but qualified agents do this for a living. They are trained to navigate their company’s incentives and will go the extra mile to get a new client.
Have you improved your driving? Or are you looking into buying an electric car? These might change your coverage options or needs. An agent should be comfortable discussing these changes and options with you.
Ask questions. Don’t be afraid to make your agent flex their knowledge a little bit. Of course, you have every right to understand the terms exactly.
Be honest about your current coverage and what would make you change. Maybe they will be able to improve your coverage at the same price point. On the other hand, they may suggest some changes to lower your premium.
Negotiate With Your Current Insurance Provider
Ultimately, your insurance provider will want to keep your business, so they might have some wiggle room to offer a better price or better coverage. You can’t quite name your own price, but you can encourage your agent to get creative.
Let them know what the other companies are offering. There might be no surprises here if you’ve already done your research, but it’s nice to get confirmation.
Don’t be afraid to switch companies. This is harder to do if you’ve developed familiarity or a relationship with your agent from your previous policy. But, it’s worth it in the end if you save money or improve your coverage.
Make sure your new policy is active before canceling your old policy. If there’s a lapse in coverage for even a day, you put yourself at risk legally and financially.
Even if you don’t end up switching providers, hopefully, you figure out a couple of ways to save. Remember, cheaper doesn`t always mean better. Make sure you end up with insurance coverage that meets your needs.