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Am I Paying Too Much For Car Insurance? 4 Questions You Must Ask Yourself |
There are ways we all can be saving more. Insurance expenses can be greatly reduced by following just a few simple rules. Below are four questions you must ask yourself in order to be sure you are not spending more than you should on auto insurance.
Question 1: Is your vehicle worth less than a standard deductible?
If you have a car that’s worth $1,000 or less, why have it fully covered? You only want collision and comprehensive coverage on a car that’s too expensive to replace; in the event you crash it or it gets stolen. The premium difference between full coverage and liability only is big. Don’t get the extra coverage if you really don’t need it.
Question 2: Do you have multiple insurance companies for multiple needs?
Most, if not all, insurance companies will give you a break – not break you, if you combine all your insurance needs with them. For example having more than one vehicle or you owning your own home will give you the opportunity to take advantage of the multi-line or multi-car discount. Sometimes you’ll find you’ll be able to take advantage of both discounts.
Question 3: Do you have additional coverage you really don’t need?
A great example of this was a from a previous article I published regarding glass coverage. Who really needs to pay $25 to $35 a month for glass coverage when their windshield replacement only costs about $100. Quote your windshield replacement before purchasing this additional optional coverage. There are so many extra options available, they can add up.
Question 4: Have you not shopped around for over a year?
This is where insurance companies make their profit. Did you buy your last policy at 25 and stayed with your insurance company since? Are you now your 35 years old and paying nearly the same amount? Make sure your company is rating you correctly. Comparison shopping is a great way to make sure you are getting the best rates for the coverage you need.