Dealing with Uncomfortably High Insurance Premiums? 3 Discussions to Have with Your Auto Insurance Agent
Insurance premium amounts are rarely a static amount. Instead, they can fluctuate up or down, depending on what may be happening in the lives of the insured drivers on the policy. Traffic accidents, DUI charges, and even low credit scores can cause premiums to rise quickly, while good driving records and responsible financial activity can help lower them. If you have just received news that your car insurance premiums are rising, here are some quick and easy things you can do today to begin cutting them back down to size.
Insurance companies often use lower premiums as a reward for customer loyalty. For example, using the same company for your car insurance as well as any other policies you may have can often result in significant savings on the total premium cost. This practice of bundling auto insurance with one or more additional types of coverage is typically available through most major insurance companies and full-service agents.
When speaking to your auto insurance agent about bundling, be sure to also ask for information on any additional policy changes you can make to help lower premium costs. Some ideas for this include raising the deductible, removing unneeded policy riders or unnecessary coverage, and dropping coverage limits and amounts. If your vehicle has a lien on it, your lender may be required to approve any changes that could limit coverage on the vehicle.
Another possible consideration that should be discussed with your agent when you are striving to reduce the cost of your auto insurance premium is how the household's drivers are matched with each insured vehicle. For example, if the person with the longest commute is driving the vehicle with the highest premium cost, having them drive one of the household's other vehicles that are less expensive to insure is an effective way to get a discounted premium rate.
Another possible way to save on auto insurance is to find ways to reduce the mileage of all vehicles in the household. In addition to allowing auto insurance services to install an electronic device to track use of each vehicle, you may also want to consider having some or all of the drivers in the household use public transportation, carpool, or walk or ride their bike to work or school.
Auto insurance policyholders who would like even more tips on reducing their car insurance premiums should consider scheduling an in-person meeting with a reputable home insurance agent in their area.