Spring is the season of new beginnings, making it a perfect time to reevaluate your car insurance. Even if you’re happy with your current coverage, a little bit of research could go a long way to saving you money – something to celebrate along with the warmer weather. Here are five tips for spring cleaning your car insurance, to make sure you’re getting the best plan for the best price.
- Research other options. Regularly reviewing car insurance options is the best way to make sure you’re not overpaying for your coverage. You can quickly compare quotes from different providers online, making this an easy task to cross off your list. When comparing options, don’t just look at the price tag – also consider the level of coverage, deductibles and liability limits. Find out whether or not the plans include things like roadside assistance, rental car coverage, accident forgiveness or disappearing deductibles. Finally, you might also want to read customer reviews to understand how easy it is to make a claim with each provider.
- Consider bundling your policies. If you’re currently paying for multiple types of insurance from different providers, do a little research to find out if you could save some money by consolidating all of your policies with one insurer. This could include bundling with your home, rental, or tenant insurance, or with policies for other vehicles, like an RV or snowmobile.
- Change your payment plan. Did you know that you could save up to 9 percent on your premium by paying your insurer in one lump sum at the beginning of your term, rather than in monthly installments? Many insurers offer this discount because it guarantees them your business for a full year, and also saves them on the administrative costs associated with monthly payments.
- Raise your deductible. In many cases, you can lower your premium payments by agreeing to a higher deductible – the amount of money you agree to pay if you make a claim. Before you decide to raise your deductible, review your finances and determine whether you have enough savings to cover the higher cost if you were to make a claim. If you don’t already have an emergency savings account, now’s the time to start one. Studies show that families that plan for large, irregular expenses – like paying your deductible after an accident – are 10 times more likely to be financially healthy than those that don’t.
- Ask about discounts. If you haven’t already, call your insurance provider and ask if you’re taking advantage of all available discounts. There are many discounts that you might not have realized you quality for – like if you recently got married or if your teen driver earns top grades.
A few small changes to your car insurance this spring could result in big savings over the long run, so take the time to compare quotes, review your current policy, and talk to your insurance provider about ways you can improve and save on your coverage.