by Matt B

Do you actually know how much you pay for car insurance?

If you can answer that question, and how much COVERAGE you are covered for, you are in better shape than most. As many insurance companies suggest, you can shop around for the best deal and choose based on your research. What most people do not understand is that you can CHANGE COMPANIES WITHOUT PENALTY at ANY TIME, even during your policy. Even though most car insurance policies come in relatively short 6 month increments, if you find a better deal while you are still “tied down” with your current company, you can get a new policy and simply cancel the one you have been paying on.

Chances are, if you have been paying the same company for the same coverage for years, you are due for overhaul. You may need to change your coverage due to changes in your way of life. Perhaps you have paid off your vehicle and no longer need full coverage, maybe you have had a child and would like more coverage, or you may even want to change your deductible in exchange for higher or lower premiums. Whatever the case, it is easy to find quotes from most major companies by phone or online in just minutes.

Always be on the lookout for the best coverage with a reputable company that has fair rates. You are not looking for a fly-by-night operation that will give you insurance for $25 dollars a month. If you have had claims with your current policy originator and you liked their service, you may consider keeping them for a few dollars more. Quick, hassle-free service can be priceless, and it is always good to know what to expect, especially with the uncertainty of an accident on your mind.

Even though I am very very happy with my current insurance provider, I still shop around every few months to see if I can get a better deal. Here is what you should look for:

-If you have an emergency fund, you can save more by upping your deductible and paying less for the total policy.
-Pay off the 6 month term in full upon purchase. This will usually save $30-80 dollars total. Most companies charge a fee to process your payment monthly.
-Contact multiple companies and find the best rate and coverage.

-Never sacrifice service for savings if you are not sure about the value of the company.

Always be aware of where your money is going, and how you can save without giving up on service. This is not just for insurance. It can and should be applied to many products and services.

So, how much do you pay for car insurance? It may be too much.

{ 1 comment }

Jennifer September 14, 2012 at 2:30 am

I would say auto insurance is a must in case your are going for a car buying. While insurance companies will try their hardest to sell you any number of extras to go along with the essentials, most of them aren’t worth it. Consider rental-car reimbursement, which pays a paltry $15 or so a day while your car is in the repair shop after a collision. Not only is the reimbursement small, the odds you’ll need it are remote. The chances are at least even that the other guy will be at fault, and his insurance will pay the full cost of this. Another dubious extra is towing coverage.
Jennifer Goldblum

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