If your car insurance premium went up again, it may be time to call your insurance agent to review your policy. Your agent can often find ways to save cost without sacrificing important coverage. Ask the following questions:
What credits are you eligible for and are you getting all that are available?
Since computers handle many processing operations, there are times when credits get bumped off. Your agent can quickly review your policy and history to see if you are getting all the credits available from your insurance carrier.
Are you being surcharged for an accident?
Have you had an at-fault accident in the past year? If so, you may be getting surcharged for the claim. Keeping your claims history clean is the best way to have a low premium. Depending on how long you are with a company, you risk being surcharged or cancelled for 1 or more claims.
Has your driving history changed since you got the policy?
Many companies use how many miles a year you drive and how far you drive to work as rating factors. Have you recently retired? Many companies have a different rate for work and pleasure use.
Do you pay your bills on time?
This is a big reason why some folks pay a much higher rate than others. The insurance industry reports to credit reporting agencies every time a policy goes into cancellation status or a bill is not received on time. This affects your “financial responsibility score” which is one of the rating factors used by most insurance carriers.
How old is your vehicle?
Go online and check the value of your vehicle on Kelly Blue Book. Older cars with low value and no loan do not need physical damage coverage and this can be removed.
What payment plan are you on?
Many companies give early payment discounts of 5% to 10% for paying the premium annually or in a shorter time period.
Call other insurance carriers for quotes.
If your agent cannot help with the above areas then it is time to call other companies. Before you call, make sure to have your policy in hand as well as your claims history, so you can compare apples to apples. Rates do vary between companies and they sometimes target select rating groups with lower rates.
Note: Insurance is state specific, and the general information provided in this article may not exactly match your state laws or your individual situation.