4 Ways Drivers Overpay on Auto Insurance

Many people are overpaying on car insurance and don't even know it. That's why experts recommend that you shop and compare car insurance quotes every so often to make sure you're getting a low-cost rate. Using InsWeb.com's online car insurance quote form, you get free car insurance quotes in a flash! And it may also help you find new ways to save money on car insurance, too.

Comparing Car Insurance Quotes Can Lead to Savings

When you shop and compare car insurance quotes, recognize that even if the quotes are about the same as your current policy, or lower for that matter, they can still be even lower. There may be too much coverage, or extra options tucked into the quote that you really don't need.

Although higher limits provide you with greater protection against possible losses, you may be carrying limits that are not in line with the value of your total assets and your lifestyle. If you carry too much coverage, you're overpaying; if you carry too little, you're underinsured. As you review your quote, consult with a car insurance agent before making any final coverage decisions.

Keeping a Low Deductible = Higher Premiums

Many drivers make the mistake of carrying the lowest deductibles in order to help offset the costs associated with filing a claim. But when shopping for car insurance, remember that the higher your deductible, the lower your premium. Indeed the cost of an accident will be that much more expensive; however, if the damage is minor, you could be spending the same out-of-pocket amount regardless. Save on your policy, not the accident; raise your deductibles if you can afford to.

Paying for Car Insurance in Monthly Installments

Just like any bill, many consumers pay for car insurance in monthly installments, either by check or automatic bank withdrawal. However, additional administrative fees are commonly applied to payments when you split your premium into installments (i.e. monthly, semi-annual, and annual). If you eliminate these fees, you stand to save quite a bit on your car insurance bill. A monthly fee of just $7 can add up to $84 over the course of a year.

Overpaying for Traffic Tickets and Moving Violations

Even if your driving record is less than perfect, don't let your insurance company unduly punish you. Having a ticket or moving violation on your driving record may affect your car insurance rate, but it's still possible to find an affordable car insurance rate. To the contrary, there are companies that specialize in insuring higher risk drivers at reasonable prices. The only way to identify such companies though, is to compare multiple car insurance quotes from different companies.

You may be able to save hundreds each year by simply taking the time to analyze your car insurance policy. Car insurance rates vary widely by company, and rates are changing all the time. If you've not shopped around in a while--especially if no tickets or accidents have been added to your driving record since you last compared rates--you could stand to save a small fortune on car insurance by shopping around for updated rates. With InsWeb.com, you fill out a single quote form and you're provided with car insurance quotes from several leading insurers, absolutely free.