What To Do If You Are Overpaying For Insurance
Identify the problem or likely Problems. I will list the top 6 reasons your insurance is overpriced and what to do about it. You can likely identify which of these or combination of these are the culprit. However, if you are having trouble please feel free to contact one of our agents. They will take the time with you to help you identify the problem and come up with a game plan.
easy or hard to fix scale
1. Problem: Your current company is not best suited for your specific situation and individual circumstance.
Solution: Shop around. Start with an independent agent that represents multiple companies. Then shop some captive agents that only represent one company.
2. Problem: The police AKA Poor driving record.
Solution: Don’t give them a reason to issue you a citation. Drive slower, Don’t tailgate, your pocket book will thank you.
3. Problem: Bad Credit.
Solution: I know, I know, Before you start…”What does credit have to do with car insurance rates?”
Answer: Insurance is based on statistics. Statistics has proven that those who are responsible with paying their bills are more responsible in other areas of their life such as driving. Thus paying your bills on time will help lower your rates over time. The reverse snow ball effect if you will.
Insurance companies can and do predict very well the likelihood of a
- 1) Insurance rates are based on your zip code. If you live in an area with a higher population density, such as a city, your insurance rates are going to be higher than if you lived out in the country.
- 2) Driving record. Accidents and tickets affect your insurance premiums negatively in a huge way. Additionally, though, you are greatly rewarded when there are no car accidents or tickets in the past five years.
- 3) Age. The younger you are, the higher your insurance cost. The older you get, the more experience you have with driving, the lower you rates go.
- 4) No proof of prior insurance. Proof of prior insurance discount is applied when someone has six months continuous insurance without a gap just prior to the start of a new policy. Most people let their insurance lapse which will not allow the new carrier to apply that discount.
- 5) Full coverage versus just liability. When purchasing a new car, most likely you will need full coverage (comprehensive and collision) which will significantly impact your insurance premium.
- 6) Gender. Men at younger ages are statistically more likely to get into an accident than women. However, the tides will change around late 40’s where women’s insurance rates are likely to be higher than men’s.
Last Updated on August 19, 2021 by Lauren Mckenzie