Many people overpay for their coverage with a typical auto insurance policy. Although full coverage does make financial sense in some situations, there are a number of variables such as depreciation of car value or owning multiple vehicles that tend to complicate the situation. By learning how to navigate through these variables, paying the right price for your auto insurance policy should be possible.
Consider bundling all of your insurance needs with one insurance company. Most insurance companies offer a cheaper price on package deals when compared to separately purchasing various types of insurance.
Do some investigation on the insurance companies that you are considering. Factors such as claim rejection rates, financial stability and customer service are all important. According to Smart Money, “Who cares if a policy is cheap if the company won’t be around to pay for claims, experts say. Independent rating agencies, like A.M. Best and Standard and Poor’s, can help determine the insurer’s financial strength. For example, A.M. Best rates insurance companies from A++ to F, in which anything above a B+ is considered ‘secure,’ and below is considered ‘vulnerable.’”
On the other hand, many people who purchase car insurance are only doing so to remain legal. This insurance makes sense for two reasons. The first is in situations where comprehensive insurance policies are too expensive to afford. The second is when the value of the vehicle is low enough that yearly insurance rates would actually cost more than the value of the car. Many people will make the mistake of paying more than their car is worth on insurance costs.
Don’t wait around for discounts. Many insurance companies will offer discounts for actions such as low risk driving, signing up for an automatic payment plan and increasing the deductible amount. Call up your insurance company on a monthly basis to investigate new discounts that you may be able to take advantage of.
Be sure to contact us at Strategic Insurance Agency if you have any questions about finding the right auto insurance policy for your coverage needs.