I have heard that ugly word recession recently. I have also seen a lot of people talking about inflation impacting their finances and needing to redo their budget. Often people start looking at all of their expenses, and that includes their insurance premiums.
If you are looking to save money on your auto insurance, there are 3 things you can do right now to save money without shopping your policies or removing coverage from your policy.
#1 – Look into paying your auto insurance in full.
Insurance companies are providing significant savings for paying your premium in full. It can save $200 to $300 some times. So if you got a tax refund you can use that to pay your premium in full for a year and save money at the same time.
#2 – Set up EFT
If pay in full does not work right now the next option is to set your policy up on an Electronic Funds Transfer (EFT) installment plan where your monthly payments are drafted from your bank account. Insurance companies are not only reducing or waiving the monthly installment fees but they also add a credit for setting up on an EFT plan.
The added bonus is you don’t have to make sure you pay your premium each month on time.
#3 – Telematics or usage based programs
Almost all insurance companies are now offering these programs. Just for signing up you get a credit on your auto policy. If you are a good driver after completing the program you can see even more of a premium savings. An added long term benefit is you can lock in the credit for being a good driver for several policy terms.
So before you look into shopping your auto insurance or removing coverage from your policy look into these 3 options. While there can be benefits to shopping you can also lose significant policy credits and features, like accident forgiveness.
Removing coverage means you are potentially increasing the amount you would pay out at the time of a claim. This includes reducing liability limits and increasing or eliminating Comprehensive or Collision deductibles.
If you still want to shop feel free to contact me to discuss your current situation. With access to multiple insurance companies I can simplify the process while saving you money at the same time.