There are several reasons why you may not have the time or inclination to browse around for a new car insurance policy. The good news is that there are many methods to save money without having to change providers. Even if you try just one of these ways, you’ll likely save some money.
Every six months, consumers should shop around for a better deal on their vehicle insurance, since it has been this way since the dawn of time.
The process of changing your vehicle insurance coverage may be time-consuming and tedious, and you may just want to stay with your existing provider.
I understand it completely.
Several years ago, when I was involved in an accident with an uninsured limo driver, my insurance company went above and above to set things right and assist me maximize my insurance claim. Their prices are affordable, and their customer service is top-notch, too!
With that in mind, here’s how you can save money on your existing vehicle insurance policy without having to transfer providers.
1. Update Your Information On File
This may seem little, but merely updating your personal information with your existing carrier might result in a reduction in your insurance prices.
That’s because your vehicle insurance rates are based entirely on risk. And the less you spend, the more you look to be a lower-risk driver on paper. For example, if you’ve just relocated to a more tranquil neighborhood, you’ll want to inform your insurer so that they can account for it in your total auto insurance quote.
Other life events that may result in a cheaper insurance premium include, but are not limited to:
Relocating to a less populated/safer region.
Relocating to a location with less severe weather.
Enhancing your credit rating (which we can help you with).
Another significant money-saver that often goes unnoticed is when your most recent moving infraction “expires.”
When you originally purchased your insurance coverage, your provider most likely inquired whether you had been convicted of a traffic infraction in the previous three years. Speeding, running a red light, and neglecting to utilize your turn signal are examples of “moving violations.”
If you’re anything like me, you had to sigh and tick [YES].
If your moving offense was more than three years ago, you may now answer [NO] to that question and potentially save a lot of money on your insurance costs.
However, since car insurance companies aren’t always willing to help you with expired moving offenses, it’s recommended to call them and update them on your driving record.
2. Straight Up Ask Them To Find Discounts For You
Following the updating of your personal information (as well as notifying them that your moving violation has expired), it’s time to look into vehicle insurance reductions.
As a result, you may believe that you must visit provider.com/discounts in order to traverse the labyrinth of discounts. This is not correct. However, this strategy is time-consuming and tiresome, and it has the potential to allow valuable discounts to slip through the cracks.
The good news is that there is a lot better option: just ask the customer service representative on the phone to locate a vehicle insurance discount for you.
My observation is that the big insurance providers are aware that their insurance discounts are many and difficult to understand — particularly when you already have an insurance policy — and their representatives are both well-trained and eager to assist you in your search for reductions. In most cases, they’ll ask you a series of questions to assist you in sniffing out hidden discounts, much like a bloodhound.
They won’t always discover anything, but at the very least they will do the work more quickly and thoroughly than you or I could accomplish on our own.
3. Bring a competitor’s Offer To The Table
Hopefully, by this stage, you and the insurance agent on the other end of the phone have developed a good working relationship. You’ve discovered some new savings opportunities and saved a few dollars.
At this moment, you have the option to express your gratitude to them and conclude the conversation feeling content and triumphant.
Nonetheless, if you want to take things a step further and maybe save even more money, there is one more gambit you can try: place a competitor’s vehicle insurance quotation on the table and ask them to match it.
This will, of course, need obtaining a few other quotations (check out the best car insurance companies for young adults for some places to shop around). However, if you put in the necessary time and work, it might pay off well.
If the idea of bargaining with your insurance carrier makes you feel uneasy, there is a more collaborative way to approach the subject. Simply state that you want to remain with them and that you hope they can compete with the other males.
When your provider learns about the competitor’s pricing, he or she may:
1.Match It (yay).
2. Meet you partway by knocking off a few more bucks (sweet).
3. Simply say sorry, nothing we can do.
If you find yourself in choice number three, don’t be too astonished or disappointed. In spite of the fact that insurance firms are still 110 percent flexible on claim payments, anecdotal evidence suggests that they are becoming less negotiable on rates. The algorithm generates a number, and that number is the amount you must pay… end of story.
Does this imply that it isn’t worth the effort to begin with to negotiate in the first place?
In no way, shape, or form. Because something amazing occurs in the background even when you make an effort at it.
Attempting To Negotiate Can Exempt You From A “Loyalty Tax”
Insurers utilize criteria such as age, income, and other factors to determine how likely you are to shop about for a lower insurance rate and leave them for a rival. This is known as the “loyalty tax,” sometimes known as price optimization.
Those who are judged unlikely to shop around for a better bargain may be subject to a “loyalty tax” of up to 13 percent.
Beyond the obvious, no one is entirely sure what qualifies you for the “loyalty tax,” and no one has a good explanation for why you are subject to it (years of loyalty).
But it’s fair to assume that rejecting a competitor’s offer will send a powerful message to your service provider, who may very well exempt you from paying their loyalty tax for years to come as a result of your decision.
4. Adjust Your Insurance Levels
When you’re looking for methods to save money with your existing provider, it’s a good idea to take the opportunity to reevaluate how much vehicle insurance you truly need.
To be clear, you must need insurance — here are seven reasons why — but you may be able to get by with less if you plan ahead of time and do your research.
For example, if you used to park on the street but now park in a garage, you may not want as much comprehensive coverage as you had before. If you have more money in savings these days and can pay an emergency repair, you may be able to securely boost your deductible from $500 to $1,000 without risking your insurance coverage.
Inquire with the customer service representative on the phone about if they can assist you with reassessing the levels of insurance you need based on your most recent personal data. On the other hand, you may simply go through my comprehensive tutorial on the subject and call them back immediately.
The bottom line is as follows:
We have plenty of reasons to shop around for auto insurance every six months since the auto insurance industry is incredibly competitive, and the strategies used by insurance companies to lure consumers away from their competitors are many.
Fortunately, more competition means that your existing supplier will work even harder to maintain you as a customer. By making a quick phone call to your insurance company to update your information, look for discounts, and review your coverage, you may save a lot of money on your vehicle insurance premiums without having to transfer carriers.