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Did You Know There Were These 8 Car Insurance Secrets?

Car Insurance Secrets

If you’re in the market for car insurance, it’s important to be fully informed before you make your purchase. There are many factors that go into choosing the right plan and company to represent you, including your driving history, age, and location, just to name a few. Carbiz, an online provider of car insurance information, has been compiling this list of the top 8 things you didn’t know about car insurance that might help you save money when it comes time to renew your policy and buy new coverage.

1) Many older drivers are paying too much

Drivers over 65 tend to have a lot of misconceptions about their car insurance. Many think they are paying too much for what they get. If you are at least 60 years old, you can save quite a bit just by switching to online auto insurance services. Simply by comparing quotes from several different companies and getting customized rates from our industry-leading algorithms, you can save around 30% on your premium. 

We’ll even guarantee it! The result: no more guessing if you’re being ripped off—and more money in your pocket every month, which could be spent on anything from new clothes to having dinner with friends! 

2) If you haven’t had a speeding ticket in 5 years, shop again

According to the auto insurance information site, if you haven’t had a speeding ticket in five years, shop around and compare insurance quotes again. If you go with a different company than your current one, you may save hundreds of dollars per year. That’s because many states offer to grandfather for existing customers—so even if your insurance rates would normally be hiked because of driving infractions, companies have to follow strict guidelines on how much they can increase rates for customers. 

Auto insurers like Progressive and GEICO exist because they are able to charge higher premiums due to their advantageous position as newcomers.

So get another quote from another provider once in a while; it could be worth hundreds.

3) Drivers who drive during rush hour save money

Getting stuck in traffic can be annoying, but drivers who stick to rush hour (when their commute home is likely going to be at its most congested) save an average of $1,600 a year. That’s because rush hour drives tend to be longer than other times of day and are more prone to unexpected delays like accidents or road construction. 

The extra time spent driving also makes for more wear and tear on your car. So when it comes time to pay for repairs, maintenance or fuel, it costs you less if you only drive during off-peak hours.

4) Men pay less than women if they have clean records

An analysis by NerdWallet showed that men pay an average of $1330 per year for car insurance, while women pay $1666. While there are many theories behind why women end up paying more, one of them is that they are often hit with higher fees than men because a greater percentage of female drivers have had at least one accident. 

If you’re an especially safe driver and haven’t been in an accident or gotten any tickets in a long time, it’s worth seeing if you can get a better deal on your policy by shopping around. In fact, according to an analysis done by Quadrant Information Services for our second annual Auto Insurance Shopping Study (2014), more than 40% of consumers who shopped around saw their rate drop.

5) Call every 6 months instead of your agent calling to save $200

In most cases, insurance agents will call you every 6 months or so to ask if you need your policy updated. It’s not necessary to have that call, however. Usually, all they do is take down your information again and then, just as they did last time, send a renewal letter out in 60 days. 

If you call them instead of letting them call you – even if it’s just for two minutes – and tell them there’s no change in your needs/wants/situation since your last renewal, then all you need to do is sign their simple form and drop it back in the mail (make sure to get tracking because sometimes insurance companies don’t even receive their own letters from customers). If your situation has changed at all (new baby! new driver!

Also, Check – 5 Methods To Keep Your Car In Good Condition

6) Ask for multi-car discounts. They may not offer it if you aren’t nice.

You can sometimes get discounts if you buy multiple policies from one insurance company. But in order to qualify for a multi-car discount, you usually have to pay all of your insurance bills on time and maintain a clean driving record for three years. You should ask about these discounts—and threaten to go elsewhere if they don’t offer them. 

Get an anti-theft device. A lot of car insurance companies will give you a discount if you install an anti-theft device in your car. This is especially true if you live in a high crime area or drive an expensive car that could be more susceptible to theft. If you have trouble affording car insurance, check with your provider about getting an anti-theft device installed before talking about any other discounts. The average cost is around $200 but it could save you hundreds or even thousands over time (depending on how much money you would save by switching insurers).

7) Shop around after an accident when it comes time to renew.

It’s true that insurance companies like to see a history of at least three years of claims-free driving before they offer you an affordable rate. That said, if you’ve had an accident and your renewal premium spikes, it may be worth shopping around for another provider. Some providers may be more willing to offer a low price on your car insurance if you came to them after having shopped around. 

8) Decide on a deductible that makes sense for your budget.

Higher deductibles typically mean you pay less in premiums each month, but they also leave you paying more out of pocket if you get into an accident. If you’re comfortable with a higher deductible, consider choosing one that is tied to your savings goal so that you’ll be more motivated to save money. For example, if you want to save up for a $2,000 vacation, set your deductible to $1,000 and then reward yourself with an indulgent vacation once you hit your goal.

Conclusion

There are a few secrets that most people don’t know about car insurance. The good news is, that those secrets are things you can use to your advantage. So instead of taking insurance advice from a random person, who knows what he or she is talking about, check out these facts and tips for yourself.

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