RoxanneA great place to start is by calling your car insurance company to get a better rate.
What was your biggest takeaway from 2020? Besides the fact that you wish COVID-19 would disappear forever, it was probably this: You need to hold on to more of your cash. Why? To build an emergency fund in case you lose your job, see a drop in your income, or some other unfortunate event happens.
Of course, holding onto your cash can be easier said than done. You’ll have to look at your monthly expenses and see where you can save. And while you could stop eating out and cut your Netflix and other entertainment subscriptions, this might be an even easier move: Reducing your car insurance payment.
It’s something we don’t think about too often. But a lower car insurance payment means more money in your pocket. And, if you do the following, it’s something that’s surprisingly easy to do.
How do you kickstart the process of paying less for insurance? By giving your agent a call.
What To Ask Your Car Insurance Agent
Since they signed you up in the first place, there’s no better place to start than with your agent. Grab a copy of your policy and give them a call.
You can get right to the point and tell them you’re calling because you want to minimize your premium. They should have a list of recommendations that can trim your costs, such as:
- Increasing your deductible – You’ll pay more out of pocket if an accident happens, but it can reduce your monthly payment.
- Getting rid of what you don’t need – Your policy may be packed with bells and whistles you never use. Trim the fat by getting rid of things like rental car coverage and roadside assistance, and you could enjoy quick savings.
- Reducing coverage – Depending on your car, some coverage could be dropped without leaving you exposed. Collision and comprehensive coverage, for example, aren’t always needed with older cars that are paid off and have little value.
After your agent lists moves you can make to minimize your payment, ask them about discounts. You could qualify for a discount due to military service or membership in a group or organization. You can also ask if you can do anything to your car to lower your payment.
For instance, you could install a security system to prevent theft. Many insurance companies offer discounts for such a feature.
Have your driving habits changed since the coronavirus hit the scene? If you started working from home, they probably have. By driving fewer miles, you could get a discount.
There are also usage-based policies that may appeal to your needs. They’ll require you to limit your mileage and may track when and where you drive. If that’s not a problem, you could significantly reduce what you pay for car insurance in 2021.
