If you haven’t reviewed your car insurance lately, it may be costing you. Rates for auto insurance have increased on average 10% since 2013, according to a survey by Consumer Reports. The best way to review your insurance is to use an independent insurance agency, like A.T.C. Agency. Have an insurance professional review your coverage, to verify that it is adequate, and you are not over insuring. Shopping for your insurance with an independent agent allows you to survey a wide variety of carriers, to find the most competitive, without sacrificing coverage. If you have an older car that is 10 years old or older, it may not be cost effective to carry comprehensive or collision insurance. Make sure you have the right coverage, if you have a higher net worth, make sure your limits of insurance reflect that.
Review your deductible. Carrying a higher deductible for will lower the premium, but make sure it fits your budget as a consumer. In the event of a covered claimed, you will be responsible for the deductible, so don’t price the deductible higher than you can afford. Many carriers allow you to have a wide variety of deductibles, the most standard being $500 per claim, check with your agent to see if you have options for a higher deductible. You will want to take a few things into consideration when evaluating different deductibles, the age and cost of the vehicle, if there is a loan, or if the vehicle is leased.
Do not lower your limits of insurance. An auto insurance policy has property damage and bodily injury limits, depending on your state you are required to carry a minimum of insurance. If you are looking to save money on your insurance, lowering your limits of insurance may end up costing you more in the long run. If you are involved in an accident that you are legally responsible for, your auto insurance policy will kick in to help pay for the damage; if you exceed the limits on your policy, you will be responsible for the addition expenses above and beyond the limits of insurance.
Insurance carriers base their premiums off of the vehicle and use of the vehicle, the location of the vehicle, and the driver. If you have a better credit rating, you will be offered a lower premium than a comparable applicant who has a lower credit score. When you are shopping for insurance make sure you are maintaining a good credit score. A good credit score will help mitigate an increase in your premium. In Minnesota insurers can base the insurance premium off of your credit rating, so make sure to maintain a good credit rating.
Keep an open dialogue with your agent, if you are planning on not driving a vehicle for 30 days or more, most auto insurance carriers will allow you to put that vehicle in storage, and will suspend all road coverage. This will significantly lower the premium. If you are over the age of 55 years old, you may be eligible for a defensive driver course, which will lower the premium of your insurance. Ask your independent insurance agent for any applicable discounts you may be eligible for; you might be over paying for your insurance.
Take some time every year or so to review your insurance. It will ultimately be beneficial for your bottom line.