Paying less for car insurance doesn’t mean you have to leave your current insurance company. I was able to lower my premiums in just a few minutes while maintaining my relationship with my current auto insurance agency.
Paying Premiums in Full
I spent a few minutes reviewing my current policy to refresh my memory and make sure I was purchasing the coverage that worked best for me and my needs. I saw something that shocked me: I was paying $4 per month just for the privilege of paying monthly, which wasn’t even a privilege I wanted or needed.
I immediately paid the remaining three months on my policy (my company renews policies each six months) and realized an immediate savings of $12, $4 for each of the months I had left. From then on, I started paying my insurance each six months in one chunk, a savings of $24 each payment, for a total of $48 a year.
Raising Deductibles
The next thing I did was check out my deductibles. Unfortunately for me, they were set at $250 and $500, the lowest deductible amounts allowed by my car insurance company. The rule of thumb is the lower the deductible, the higher the premium, and that’s exactly the opposite of what I want.
I logged online and was able to make changes in my account, without having to call in. I raised these deductibles to $750 and $1,000, the highest allowable amounts by my auto insurance company. This saved me $55 per policy period, which is $110 per year. This works out for me because I have some savings earmarked just to cover expenses like this.
Loyalty Discounts
One of the best things I have done over time to realize a savings on car insurance is staying loyal to my agency instead of hopping around to different policies. I receive a 10-year loyalty discount with my carrier. This is by far the biggest discount I get. It’s greater than a multiple policy, coverage discount, and car alarm discounts. No other carrier in my state can beat my rate and give me equal coverage to what I have currently due to this discount.
Highlights:
- Paying full premiums saves money in most cases because many carriers charge a monthly fee for the convenience of paying monthly.
- Having the highest allowable deductible and a savings earmarked to cover it translates into lower premiums in all cases. Low deductibles equal higher premiums.
- Remaining with the same carrier is advisable unless another company is offering a much lower premium, or your current carrier is not a great one. Customer loyalty discounts are large.
Source: personal experience
