Last year when purchasing a car insurance policy, insurance agent suggested that they had to charge me higher premium due to an accident I had two years ago. He advised that my premium would be reduced after three years have passed from the date of the accident. This year when I received bill for my policy and saw no change in my rate, I went ahead and obtained few online quotes. Majority of the quotes were significantly lower than the rate I was paying. So I called the insurance agent to inform him about my findings, after checking few things he agreed to lower my insurance rate. From this experience I have learned that insurance company may not be automatically reward you the discount you are entitled to get for your car insurance policy.
Many of us only review and change our insurance policies when we buy a new car or move to a new place. But there are plenty of other circumstances when you should take a look at you insurance policies. Here are few such situations:
Three or more years have passed since you had any accident or citation: This is the most important one and should reduce your car insurance rate significantly. After I called my agent my premium was lowered by 30%, but the amount of discount will vary for everyone.
You or a family member obtained a new car or a home: Most insurance providers offer lower insurance rate for insuring multiple policies from them. In most cases it is a good idea to obtain all the policies from the same insurer. There may be circumstances when it is a good idea to obtain them from different providers.
You have changed job: Many insurance companies offer lower car insurance rate for certain professional group so you should find out if such discount is offered for your new profession. Also, with the new job your driving habit may change. For example, you may be driving fewer miles than you were with your previous job. In many cases this will lower your rate.
Your family situation has changed: This can be a situation such as you got married or your spouse stopped working. When you get married consider combining your spouse’s insurance policy with yours, because majority of the insurance companies offer multi-car discount. Another situation: You or your spouse stopped working and the second vehicle is now only driven occasionally. In this case the second vehicle can be treated as entertainment vehicle and many insurance companies will lower your car insurance rate because of this switch.
Your credit rating has improved: You have reasons to believe that your credit score has significantly improved. You should obtain a new quote to see if you are able to lower your car insurance rate with the new credit score.
These are just few of the circumstances and there are many more such situations that can lower your car insurance rate. Insurance is a necessary expense for car owners and there is no way to avoid it but there is certainly ways to lower your car insurance rate. It is always a good idea to verify that your insurance rate is an appropriate one for your current situation. When the opportunity arises to review your car insurance policy, take it. Inquire about any discount, obtain few quotes and you may be pleasantly surprised at what you find.