Why Does My Car Insurance Rate Keep Going Up and Up?
Reader question:
I’m a good driver, I don’t speed, I never get into an accident, I have a safe car that’s a few years old–so why does my car insurance premium keep on going up?
July
Good question.
It’s annoying to watch those prices rise even when you are doing everything that you can to stop them. However, that is the way it is, and the reason that your premium prices are rising out of your control is not your own fault, but the fault of other people who are insured by your car insurance company. Fixing a car and replacing it are things that are getting more and more expensive every year, and with the number of claims that are filed, it can be difficult for a car insurance company to keep the prices down on their premiums while still making a profit.
You cannot avoid this problem entirely, but one way to lessen its effect is to go looking for a car insurance company whose rates are not rising so rapidly. Get a free online auto insurance quote and see what other companies would offer you in terms of quotes. It could be that you find another company that is just as good as the one you are currently at, but which gives you your car insurance for much cheaper.
Even if your prices aren’t rising at your current car insurance company, then you should still get an online quote every once in a while, just to see where you’re at. Many of the people who have car insurance today and are overpaying are doing so because they become comfortable with their car insurance company and don’t realize that there are companies out there that could be offering them more for their money. A twice yearly look at your policy and your price for updates and searches can keep you satisfied and a little bit richer.
Cheers,
Fashun Guadarrama.
How Do I Save Money On My Current Auto Insurance Policy?
Reader question:
How do I save on the car insurance that I already have?
Luke
Great question.
Let me keep this simple and quick. There are so many ways to save on car insurance that you wouldn’t believe, but the easiest ways are the following three.
- Jack up your deductible. Getting a low deductible brings higher car insurance premiums, and considering that you will rarely use that deductible, it just doesn’t make sense to be paying so much over time to pay a smaller price one time. Instead, keep out of your car insurance claims office when it comes to fender benders and save it for the serious stuff. Raise your deductible and make sure you have money set aside to pay for it should you ever have to make a claim.
- Get rid of what you don’t need. A lot of people end up paying too much on their car insurance premium because they have coverage that just isn’t necessary. You can save a lot of money by going down to just the state minimum on your car insurance and getting rid of things like collision and comprehensive. As a warning, though, only do this if your car isn’t big on value. If you have a car that is worth a lot, stick with the bigger amount of coverage.
- Discounts! There is a plethora of discounts out there from everything ranging from your report card to your air bags, and depending on the company, in some cases you could save more than three fourths the amount of your premium. It’s worth looking into if you have the qualities typical of a responsible driver, considering that you could save so much.
- Shop around. You could get a much cheaper price than you have right now just by getting a free online auto insurance quote and comparing the quotes from different companies to see who is best in price with the most value.
Cheers,
Fashun Guadarrama.
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