March 14, 2023
With auto insurance rates so high, shopping around is always important to give yourself the best chance to beat your renewal quote and lower your auto insurance costs.
For most families, auto insurance is a major annual expense, and significant rises have left many drivers finding it increasingly difficult to insure their vehicles.
Hikes in the hundreds are routinely reported by drivers with clean licenses, no claims, and no penalty points, although insurance providers refuse to give fair explanations for the hikes.
Treat your letter of renewal as a reference. It’s the highest amount you’re going to pay this year for auto insurance – you should do better!
Don’t disregard it when you get your letter of renewal. You just need to get 20 working days’ notice of renewal from your insurance provider, so get on the phone and get at least three new quotes from various insurers. For the same amount of auto insurance, this will give you a clear idea of the variety of premium rates available. As most insurance companies have exclusive offers for new clients, you should be able to beat the renewal cap.
Brokers can use discretionary discounts, especially if you tell them that you have a better deal from another insurer. The phone is the best way to get an auto insurance quote.
This move is particularly important for older car owners, exotic car owners, modified vehicles, and cars with large engines. Some major insurance companies do not want to insure such cars and may give you crazy quotes to send you on your way.
Some auto insurance companies are not going to cover a vehicle that is over 15 years old, and others have lists of vehicles and types of drivers they don’t want on their books. This is where you’ll need to make some additional calls to businesses that insure rare vehicles and not-so-perfect drivers.
An excess amount is included with all comprehensive auto insurance policies; this is the amount you would pay in case of an unintended injury claim. Usually, you can pick how much you want this excess to be and the amount you pay for auto insurance can make a huge difference.
Contact your current insurer once you’ve fitted yourself with a few quotes. Tell them that you’re shocked that (even though you’re not) the premium is as high as it is. Ask yourself how high it was last year, and if it went up, ask yourself why. This will inform them that as little as possible you are serious about paying them.
In addition, you will tell your insurer the price of your best auto insurance quote. Your insurance is much more flexible than you would expect and your insurer would probably reduce your premium to keep you as a client. If they’re doing that, fine, but keep pushing. Ask if this is their best and final rate – you might always squeeze out a few more bucks from them. This should give you your current insurer’s highest renewal rate.
Make your decision, call your insurer and tell them the good news – you just gave them the business, so they should be satisfied. And with a new insurer, you’ll start covering or renewing your old one at a price that’s better than your renewal.
You can definitely save money by using this strategy. All it takes is a few phone calls, which for another year you won’t have to make again. And to save a few hundred bucks, it’s not really that much hassle, is it?
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