Am I Paying Too Much for Car Insurance?

Most of us worry about paying too much for car insurance. It’s a fact of life, something you can’t escape unless you intend to get around via public transportation, and there is certainly no reason to overpay. So how can you tell if you’re paying too much for auto insurance?

You’ve Changed Jobs

Large companies often have affiliates in numerous areas of commerce, including the insurance industry. If your new employer has struck a deal with an insurance company, you might be able to get an excellent deal through them. Often, such alliances require that your auto insurance payments be automatically deducted from your paycheck (just like health insurance and other benefits), which increases the savings.

Whenever you change jobs, visit the HR department and ask to see a list of companies and services with which your employer partners. You might be paying too much for auto insurance as well as other things, such as electronic equipment and rental cars. Take advantage of all the benefits of employment.

Your Credit Score Has Improved

According to Kiplinger, your credit rating can have a significant impact on whether you’re paying too much for auto insurance. As you get older, your credit score goes up because your credit history is longer. Furthermore, if you’ve got positive reports from creditors that didn’t exist before you purchased insurance, you could be missing out on savings.

You can either ask your current insurer to run your credit check again, or you can apply for quotes from other insurance companies. Whatever the case, don’t pay too much for auto insurance just because your credit score used to be less than stellar.

You’re Paying More Than Your Friends

One of the biggest factors in determining auto insurance premiums is geography. Where you live changes how much you are charged; big cities, for example, often carry higher premiums than rural areas. To determine whether you’re paying too much for auto insurance, conduct a poll of your friends and relatives who live nearby.

Other factors can play a part, of course, but this should give you a good range of numbers. If your premium falls far above the average, you’re probably getting hosed, and it’s a good idea to start obtaining quotes from other insurers.

You’re Staying Closer to Home

Another factor insurance companies consider is how often you drive your vehicle. The law of averages suggests that, the longer you’re in your car, the more likely you’ll get in an accident. If you’ve just become self-employed or you’ve decided to transition to a stay-at-home parent, you’re driving less and your auto insurance rates should reflect that change.

Always talk to your insurance agent or request new quotes from other insurers after you make a significant life change. These factors can lower your premiums by hundreds of dollars, and you don’t want to miss out on those savings. Other changes that might impact this include retirement, moving and finding a job closer to home.

You Never Get in Trouble

No accidents? No tickets? You might be paying too much for auto insurance. Safe driver discounts are available through most insurers, and you might not be aware of them if you bought your first policy years ago when an accident or traffic citation loomed in your recent past.

Insurers go back a certain number of years to determine whether tickets or accidents are germane to your car insurance premium. Talk to your insurance agent and find out if you’re eligible for a discount.

Source:

Kiplinger