Car insurance is one of those expenses nobody wants to pay. It’s also one of those expenses that never goes away (unless you stop driving). For that reason, you must secure comprehensive and affordable coverage from a reliable provider.
The question of whether or not you’re paying too much for car insurance coverage depends on various factors. It’s your job to make a final determination. Depending on what you find, it may be time to make a change.
Here are the three steps you can take to determine if you’re overpaying for coverage:
1. Review your current coverage
This is where the process begins. You need to know how much you’re currently paying for coverage and what you’re getting in return. Don’t rush through this step. Carefully review every line of your policy to ensure that you understand it from start to finish.
If you have questions about your coverage, contact your insurance agent to clear the air. They should be able to address anything and everything that’s on your mind.
2. Receive quotes from multiple providers
Even if you determine that your current policy is affordable and in line with the industry as a whole, it doesn’t mean you should stand pat. It still makes sense to receive quotes from multiple providers. As a general rule of thumb, shoot to receive quotes from a minimum of three insurance companies.
The key to success with this step is to compare apples to apples. This is the only way to know if you’re on the cusp of saving money.
Note: it could make sense, but be careful about reducing coverage to save money.
3. Think about discounts
As you review your policy, pay close attention to the discounts that you currently receive. From there, make a list of those that aren’t included in your policy. These are the ones that you want to ask your current company about. And of course, you should seek these out when obtaining additional quotes.
A handful of discounts can add up to thousands of dollars in savings over the course of a year.
Tip: just because you don’t qualify for a discount today doesn’t mean you won’t qualify for it tomorrow. Regularly review your policy with an eye toward additional discounts.
Final thoughts
If you believe that you’re paying too much for car insurance — and even if you don’t — it’s in your best interest to follow the steps above. Doing so will lead you toward a better understanding of your policy and everything else the industry has to offer.
Yes, it’ll take you some time to move through these steps, but in the end, it could save you a lot of money.
When was the last time you reviewed your car insurance policy? Did it lead you to make a change? How much money did you save as a result?
