Automotive Finance

4 Things Your Auto Insurance Company Doesn’t Want You to Know

No matter what your current financial situation, we all want to know how to save money on auto insurance. Here are some tips to help.

In good times, it’s natural that we pay less attention to our individual expenses. But today, regardless of our current situation, we all need to save as much money as possible. And one of the smartest ways to do that is knowing how to save money on auto insurance.

Why Auto Insurance?

We all have a lot of bills, but when it comes to saving money, the experts agree one of the best places to start is with your auto insurance.

While it’s natural that companies want to generate as much profit as they can, auto insurance is one area that many people end up paying way more than they should. That’s because they are unaware of some key information which insurance companies aren’t in a particular hurry to share.

How to Save Money on Auto Insurance

  1. Auto insurance rates are constantly changing.
    In fact, in certain states and for certain policies, rates have actually dropped significantly in the past 12 months. And, if your record has improved you may even be eligible for additional reductions.

    Keep in mind, your record could be improving simply because you haven’t been driving as much as you used to drive. Even the best drivers will likely have a better record if they haven’t been on the road.
  2. You are NOT locked into your policy.
    Even if you have pre-paid your current insurance company for an entire year, you have the right to cancel the policy at any time and receive a pro-rated refund. In fact, there is no cost to switch policies from one company to another.
  3. If you aren’t driving, you CAN get a reduction in your current rate.
    When more people found themselves working from home, many insurance companies gave them an automatic discount or refund. It was a small percentage, but it kept consumers happy. As a result, most people didn’t dig into it much. This, it turns out, is a mistake.

    When you get your auto insurance, you tell the rep how much you drive. Your rate is based on that mileage (among other things). However, if you’re no longer commuting or commuting significantly less, then that rate should be lowered. Even if you’ve gotten a small refund, you have a right to call your agent and find out if there is a lower rate you can pay moving forward.
  4. Comparing quotes from multiple insurance companies delivers the most savings.
    Today, there are online services that let consumers quickly shop for the best rates from a nationwide selection of auto insurance companies, all competing for your business. You simply enter some basic information — what you want, what you drive, etc. — and you can instantly receive quotes from a wide range of reputable companies.

It’s true that for this last option you often have to enter a phone number or email to get the information. And, yes, someone will likely call or email to sell you on getting a new insurance plan.

Don’t sweat it! If they can get you a better rate — and it’s worth their time to do that because that’s their job — then it’s worth the 10-minute call. If they can’t help you, then you got the information you needed in one quick call.

All of us could use a little extra cash in our pockets. With a few fast calls, that can become a reality. And once you find out you are saving some money, you’ll be happy you took those few minutes.

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