Are you overpaying for car insurance?

If I could recommend one or two ways to make significant savings on your rate, it would probably be the car you drive
~ Loretta Worters, Vice President of Communications for the Insurance Information Institute

The average premium yearly rate for automobile insurance costs about $850. So in the lifetime of driving your car, expect to pay $84,000 for an average driver. This is in accordance with the information posted on the Motor Trend website last February 2011. Imagine what you could buy with $84,000. You could certainly buy a nicer car, or a first class vacation every year, or a bling the size of your thumbnail, or … just let your imagination run wild. That’s a lot of money ladies! And it’s something that you shouldn’t have to pay for on car insurance of all things. This overpriced charge can absolutely be reduced.

Recent changes to car insurance policies show that  most drivers have paid more for their car insurance coverage for years . Research reveals a hefty 45% savings on car insurance costs or a lower rate of $9 per week based on your eligibility. This is a shocking truth that people should be aware of.

A thorough investigation indicates that a large number of people are being deceived into believing that they have been paying a fair rate for their insurance. This has been the sales strategy used by insurance carriers, deliberately keeping higher prices so that they can earn more revenues. It is typical that an insurance agent earns money based on the policies that a buyer chooses. It means that agents can be paid more for a policy with a higher premium.

car repairs vs. your money

Smart drivers, on the other hand, are now able to save more than $500 annually as compared to what they were paying before. They have learned how to immensely cut their bill by following one simple rule – that is to NEVER get a car insurance policy, unless you have compared and checked out all the possible discounts that are available via an unbiased source. Note that insurance companies may also aggressively pitch their discounted rates and enticing perks, but think of how many of these are actually real.

My research shows that most fair and legitimate companies are offering side discounts based on different parameters, like whether you are a male or female driver. Always get a variety of quotes which are estimates of what you would be paying for your premium. Dig deep into the discounts they could offer. Remember that discounts are not always advertised, as they are usually posted via FAQ sections of their materials. Discounts are also based on location and may be different depending on your state.

Besides what state you live in, discounts are also available for coverage on multiple cars or car device add-ons. Some also offer lower rates if you are a member of the US military or a student attending a school far away from home. Full payment or a raised deductible could definitely save you more. Low mileage and a good credit score can also impact your eligibility for these discounts. These are surprisingly the same when you maintain a good driver record or subscribe to paperless billing.

 So remember to always guard yourself against overpaying for insurance services. Regularly review your policy or opt to drop any needless coverage. These factors affect your insurance’s premium cost. Value your car as you value your money. Get as much information as you can. We have a right to information because  in saving money, information is always the key .

Overpaying for Car Insurance?

You could save hundreds per year.

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