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Tips to Finding Cheap Car Insurance

by JS 


save on car insuranceAre you interested in saving money on car insurance? For many years, I paid what my agent told me because I figured he was looking out for my best interests. While this was true to a certain extent, soon enough I realized that I was paying more than I had to.

Earlier in the year, I finally decided that I was done paying too much for car insurance coverage. At the very least, I wanted to determine if paying less was an option.

By asking the three questions detailed below, I was able to shave $20/month off of my car insurance premium:

1. Do I qualify for any additional discounts? Believe it or not, many consumers never ask this question because they assume that their agent is “taking care of them.” Although you may trust your agent, it does not mean that they are doing what is best for you. There is a good chance that they are not telling you about additional discounts for one main reason: the more you pay the more the agency earns.

By asking this question, my agent found that I was eligible for a “good driver” discount because my driving record has been clean for the past five years.

2. Do you care if I shop around? By asking this question, you are putting your agent on the spot. Deep inside, they want to tell you that they are giving the best deal and that nobody else can beat what they have to offer. In other words, they want to scare you away from comparing their policy to those from other companies. Although you do not need permission to shop around, you at least want your agent to know that you are open to different options to put the pressure on.

Even though I did not end up making a change, I did receive quotes through several online sites including: Allstate, State Farm, Progressive, Auto Insurance Locations.com, and Auto Insurance Quotes.com. By the time I was done receiving quotes, I had a very good idea of what I wanted to pay as well as what type of coverage was needed.

3. Do I have more coverage than I need? This is something I struggled with while trying to lower my car insurance premium. On the one hand, I knew that adjusting my coverage could help me save a lot of money. On the other hand, I did not want to give up too much protection just to save a few dollars.

In the end, my agent really came through. He showed me what I currently pay and exactly what it gets me. He then provided two other quotes that provided slightly less coverage but were both substantially cheaper. This gave me the chance to see how much I could save by altering my policy but still maintaining pretty good coverage.

In the end, I was able to save $20/month on the cost of car insurance. This may not sound like a lot, but over the course of the year it equals a savings of $240. Not bad for the hour or so that it took to ask the right questions!

Do you have any questions or tips to add to this list to save on your monthly car insurance? I’d love to hear your comments!

(photo credit: Eid Mubarak)

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