Anyone who drives in the United States is required to have auto insurance. Many people renew their existing auto policies without making any changes or checking out the price of other insurers. They may also neglect to report changes like drivers who have been dropped from their policy. Here are some tips for saving money when renewing auto insurance policies.
1. Ask About Discounts
If a consumer has purchased a new home, gotten married or retired within the term of the policy, it is important to report these changes to the auto insurance company before renewing a policy. An example would be senior auto insurance. Many insurers offer discounts or lower rates when these life changes occur. By insuring a home and auto with the same carrier, it is possible to receive customer loyalty discounts on both policies. Since retirees typically drive less than those who commute to work, they are usually given a lower insurance rate. This can help significantly when renewing auto insurance
2. Compare Prices
Although comparing auto insurance rates was once a time consuming process, the internet has made it quick and simple. Well before the auto policy is due for renewal, get free auto insurance quotes from several carriers to compare rates. Safe drivers may be able to negotiate a lower rate with their current insurer if they use quotes from other carriers as leverage. Comparison shopping for low rates does not take much time and can save a substantial amount of money.
3. Review Insurance Needs
Before renewing auto insurance, it is important to review current insurance needs. As cars age they lose value and it may be time to consider dropping collision and comprehensive insurance on an older vehicle. If teenage children have left home, joined the military or bought their own car and teen car insurance, their status on the policy should be changed. If an individual has had a major change in income, he or she may want to consider changing the liability limits on the policy as well.
4. Take a Defensive Driving Course
Most insurers offer up to a 10% discount for up to 3 years for drivers who have completed a defensive driving course. The courses are inexpensive and take about eight hours to complete. Taking a course before renewing an auto policy can substantially reduce insurance rates on the renewal policy. Accredited defensive driving courses can be found by checking with the state department of motor vehicles or the state insurance department. The insurance company may also have a list of approved courses.
5. Examine Insurance Statements
A traffic citation for a moving violation or an at fault accident can raise insurance rates for up to three years in most states. Individuals who are paying higher rates due to a violation or accident should keep an eye on insurance statements to make sure that rates are lowered when the accident or citation expires after 3 years. Agents and companies occasionally forget to remove these items from current premium rates and no one wants to pay more than necessary.
6. Pay for the Full Policy Term
If a driver has been making monthly installments on auto insurance, renewal is the perfect time to save money by changing payments to quarterly, semi annually or annually. The fewer the number of payments, the greater the savings. Insurance companies typically add a service charge to payments so making a single payment for 12 months auto coverage can result in a noticeable reduction of cost. Ask the company for quotes for monthly, quarterly, semi annual and annual rates.
7. If the Company Refuses Renewal
In most states, an insurer can only refuse renewal on an existing policy for cause and they must advise the insured person in writing. The laws on grounds for non renewal vary between the states and anyone with questions should contact their state insurance department. If the company refuses to provide a written explanation for non renewing an auto policy, the insured person should report the action to the state insurance department as a violation.
Renewing an auto insurance policy without taking the time to compare rates and consider changes in the policy can be expensive. An educated consumer will take renewal time as an opportunity to find savings on the insurance they must have. You can get an online cheap insurance quote at auto insurance websites. It is the quickest and easiest way to make sure a consumers isn’t paying too much for car insurance.