3 Tips for Reviewing Your Car Insurance to See if You Should Switch

3 Tips for Reviewing Your Car Insurance to See if You Should Switch

If you’re like most people, you would rather not go through the hassle of changing your insurance carrier. After all, it usually requires some time and research to find the best deals. And who has the time for that?

However, it’s never been easier to review and research car insurance policies to see if you’re getting the protection you need at the lowest price. In fact, online comparison tools provide a fast and easy way to find the best rates within minutes.

As you study your current policy, here are a few ideas to see how it stacks up against the competition:

1. Review Your Deductible 

The deductible on your policy will make a big difference in the rate you pay, so reviewing it often will help you make the best choice in insurance carriers. It’s also a great way to make sure you aren’t comparing apples to oranges when shopping for cheap car insurance. For example, some policies might offer cheaper rates but require a larger deductible for the same coverage.

Additionally, always be cautious when raising or lowering your deductible. If a potential wreck would create financial havoc with the higher deductible, don’t risk it just to save on your car insurance rate. Sometimes, a higher monthly rate is a better financial decision than the risk of not being able to pay for auto repairs if you become involved in an accident.

2. Ask What has Changed 

Multiple factors affect your car insurance rate, including your zip code, length of commute, and both your short-term and long-term driving history. Since these factors can change over time, it’s a good idea to review each in your current policy to see what, if anything, can be changed that would potentially reduce your premium.

You might also have certain coverages included on your current policy that are no longer needed, such as additional drivers, roadside assistance, or comprehensive coverage. Looking at these annually to make sure you still need them is a great way to determine if you should switch car insurance providers.

3. Check for Discounts

When comparing your current policy against other options in the marketplace, don’t forget to check for discounts. Car insurance discounts are available through carriers for everything from student grades and driving education courses for younger drivers, to membership in various organizations and driving history. These discounts can add significant savings to your monthly car insurance bill. 

According to the Federal Reserve System, nearly 70% of Americans say an unexpected $400 expense would force them to dip into their savings or pull out their credit card. As prices rise and family budgets tighten, finding cheap car insurance through discounts can help ensure more money goes into your savings each month. It also allows people living paycheck to paycheck to find a path toward better financial health. 

The Big Question: Should I Switch Carriers?

In today’s insurance marketplace, people are constantly bombarded with advertisements to save money if they switch carriers. Obviously, insurance policies are not all created equal. Knowing whether you’re getting the best deal or should find a different carrier requires a little research and planning. But the amount of money you can save will go a long way toward helping you balance your monthly budget. Think of it as time well spent that will more than pay for itself.

The views expressed in this article are those of the authors and do not necessarily reflect the views or policies of The World Financial Review.