How to get the Best Deals on Car Insurance
There are so many articles, stories and “pro tips” regarding saving money on car insurance, but the truth is, you can’t believe all that is posted out there on the internet. Not every testimony is real, and not every blog post has any real factual basis.
The first thing you must understand about car insurance is that you can’t take a ‘one-size-fits-all’ approach. In that, the same policies and strategies that work for one person might not necessarily work for someone else.
A recent survey posted on Rodneydyoung.net revealed that one in three Americans have never actually re-purchased their insurance. Of this ratio of people, 32% claimed that because re-shopping would have been too much of a hassle, while 16% claimed they were just avoiding all of the paperwork that came with it.
Some companies are geared toward finding efficiency and savings in the insurance industry. Gabi is one such “insurtech” company. Gabi and other such companies aim at shifting the industry’s focus from making fast, easy sales to forming long-lasting relationships. Such relationships would benefit both consumers and forward-thinking insurance companies.
After hearing about hoe the Gabi app has helped many others to enjoy huge savings on their auto insurance, I decided to give it a shot. After submitting the necessary info, they needed—such as my name and driver’s license number—I got a reply from them stating that I have found $615 worth of savings on my AAA policy.
Needless to say, I was quite excited about this news. I was ready to sign up right away! But soon after came a crushing disappointment. It turns out, after having run more of my information through their system, my miraculous savings of $615 dropped to under $50! Clearly, the specifications of my personal information changed their minds about how much they could help me save.
Even though Gabi might still be a valued tool to cut back on auto insurance costs, it should be noted that there is more to the process than just downloading the app and making bank. The devil, as always, lies in the details.
Strategies that Actually Work
While many of the tips out there are less enticing once you check them out, there are some strategies that will certainly work out for you. For one, you should pay attention to your credit score. James Garvey, Self-Lender CEO, claims that with the exception of California, Massachusetts, and Hawaii, insurance companies can legally use your credit score in the underwriting process. With this in mind, it can be said that having a high credit score is pretty important when it comes to saving on car insurance. The only states in which your credit score is not eligible for underwriting your policy are California, Massachusetts, and Hawaii.
According to Jeol Ohmna, founder of Carinsurancecomparison.com, people hardly consider their employer when thinking about insurance. Then he explains that many people are coerced by their employer into using a specific car insurance company, and such company might not have the best deals for that employee. If you find yourself in this position, you should definitely talk to your employer about it.
Another strategy that should not be overlooked is that of playing it safe. Security is of utmost importance here. One prominent insurance agent said that it is important to enabling some kind of security system if you want to save on insurance. She goes to explain that monitored systems, such as OnStar and LoJack, can result in even more savings. An important aspect of playing it sage is being careful while driving. It is commonly known that a poor driving record increase auto insurance premiums. By the same merit, having a good driving record will open up better insurance deals to you.
Finally, Don’t Put All of Your Eggs in One Basket
It is never wise to seek out a single source of saving when it comes to auto insurance—or anything else for that matter. While one particular insurance company might be more familiar to you, it is good to look everywhere before making a commitment. And even after having made a commitment, you should still continue to shop around for better deals with auto insurance companies that don’t require down payment, as the market is as dynamic as it is competitive.
Another prominent agent in the field explains that even though the price is often seen as the most important factor in considering an auto insurance policy, it actually one of these least important aspects. This is so, as the premiums are based not on actual products or services, but on risk. This perspective causes us to look at insurance, not through a lens of “cheap” or “expensive”, but rather, as “low risk” or “high risk”. Expensive premiums represent high possibilities of accidents, while cheaper ones represent more minimal risks. With this in mind, search not just for the cheapest premium, but for the premium that covers the most ‘risk’ for the dollar.