10 Tips to Avoid Overpaying for Car Insurance

Fran
Fran Majidi
May 22, 2019

We don’t know how to break it to you, but you’re probably overpaying for car insurance. Auto insurance carriers are overcharging you because they can. If you’re not comparing rates because it’s too time consuming or switching carriers sounds like a complicated hassle, you are definitely overpaying for insurance. There are also various factors that entitle you to a discount, but you may have to point them out to your agent in order to get the discount. Below, we have a roundup of the most commonly overlooked ways to save money on car insurance. If you’re interested in scoring some discounts on your auto insurance, read these 10 tips and let SmartFinancial give you multiple free car insurance quotes!

  1. Do you need that coverage?

    Often people think they are being diligent and they buy comprehensive and collision coverage in addition to their liability coverage. They have the coverage even when their car’s blue book value is $1,000. Let’s say you totalled your car and the accident was your fault. You’d have to pay your deductible first before getting paid out by the insurance company. Plus, you’d be making monthly payments to insurance, which add up over the course of a year. Do some number crunching because it’s very possible that you’re overpaying for auto insurance.

  2. Why is your deductible so low?

    It’s a good idea to set your comprehensive and collision deductibles high when you want to pay the least amount for insurance each month. Otherwise you are overpaying. Usually deductibles are offered in tiers of $250, $500, $750 or $1000 (or some variation on those numbers; some carriers only offer $500 or $1,000). The only down side of this is that you will have to pay a higher price upfront if you get into an accident. The deductible is what you pay before the insurance company starts paying for your damages.

  3. Can you pay upfront?

    Paying your 6-month car insurance bill upfront, you’ll get a solid discount. If you can afford it, it’s definitely a great way to save money. If you have the cash and are not paying the lump sum upfront, you’re overpaying for car insurance.

  4. Why haven’t you gone digital?

    If you opt for electronic billing and reminders you are eligible for an easy discount. Why are you wasting paper and paying too much for auto insurance? Most insurance companies will offer this discount so contact an agent right away. In fact, while you’re at it, check to see what rates are available to you here.

  5. Have you comparison shopped lately?

    If you are lazy about paying the least for the best insurance, you are probably paying dearly for mediocre coverage. The good news is that insurance companies need to stay competitive by charging reasonable rates. There are many carriers out there, so you should be checking what car insurance rates are available to you at least once a year. You also don’t need to do any of the footwork if you work with SmartFinancial. What you do is fill out a few questions which will generate several rates instantly. You will then be connected with an agent who can help you secure that rate.

  6. Are you a member yet?

    All sorts of memberships can earn you a discount. Even your job may entitle you to one. Look into all your existing alumni memberships, automotive or trade memberships and see if your insurance company will give you a discount for any of them. Also, ask your agent about which ones will get you one for sure! Sounds like it’s time for you to get connected, otherwise you’re paying too much for car insurance.

  7. Do you have the right gadgets?

    Safety features earn you discounts so alert your insurance agent to any high-tech options you may have in your car. If you have  a rear view camera for backing up, an auto alarm or even a vehicle locator, you may be entitled to a discount. If your insurer doesn’t offer one, others will. Again, visit  SmartFinancial.com to get paired up with the right agent.

  8. Do you rarely drive?

    People who have low commute-times can earn a discount just for driving less. Think about it, the less you drive the lower the chances that you will have an accident. You may also be in a carpool or largely rely on buses or other types of public transportation on a regular basis. Whatever your reasons are for keeping your mileage low, you are probably paying too much for your auto insurance if you don’t have a discount. We can help.

  9. Did you get your multi-policy discount?

    If you have a renter’s insurance policy or a homeowners insurance policy with the same carrier you qualify for a discount. Don’t assume it’s automatically put into place by your agent though. You may need to whine about it a little bit. If you have any other type of insurance with your car insurance (RV, boat, even business), you should always ask about multi-policy discounts. If you are insured by several different carriers for each type of policy, you may want to consider bringing your business to one carrier for a really big discount.

  10. Did you get a bundling discount?

    A bundle is similar to a multi-policy discount, and if you don’t have one you’re paying too much for auto insurance. The usual bundling options are auto and homeowners or auto and renters or auto and condo insurance. You can also get a discount if you bundle your motorcycle insurance with home, renters or condo too.


Some Other Reasons You’re Paying More Than You Should:


  • You rent an apartment. If you owned a home or condo, you rate would dop.
  • Your car is not the safest when it comes to car crash studies
  • Your car and/or its parts get stolen often.
  • You drive a lot. Like, a lot!
  • You live in a state that uses credit to determine car insurance rates. You’re credit is not so great.
  • Your car is especially expensive to repair and/or has expensive parts.
  • You live in a high-risk neighborhood where there may be lots of thefts/vandalism
  • There’s a teenager living in your home. Teens have absurdly high rates and unless you exclude these individuals, they will raise your rate just by living in your home.
  • You don’t have a college degree. In fact, the more degrees you have, the better off you’ll be in your rating.
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