Signs You Are Overpaying For Auto Insurance

Are you worried that you’re overpaying for auto insurance? In many instances, people don’t start off paying more but end up getting there over time. Policies have a way of creeping up in price, and before you know it, you could be paying almost double what you were.

If you’re concerned that you’re paying more than you need to, you’re probably correct. The only way to know for certain is by getting a few quotes from other car insurance companies. In the meantime, here are a few signs that you are overpaying for car insurance.

You haven’t updated your policy recently.

Before renewing an auto policy, ask your local independent agent for alternate quotes. It doesn’t hurt to look at prices and know how your premium compares. If you don’t have an independent insurance agent to do it for you, experts recommend shopping around for car insurance once a year so that you know you’re getting the best deal. Though, you are still better off dealing with an independent agent because they will have access to companies you can’t access without them.  You don’t need to switch insurers every time, but you should be aware of the going rate for your vehicle.

You haven’t asked about discounts.

Many people assume that their insurance company is giving them the best price, but this isn’t always true. When renewing your policy, make sure that you are getting all of your discounts. In New Jersey, some of the best insurance discounts you can get are from:

●       Bundling home and auto insurance

●       Taking a defensive driving class

●       Insuring two or more vehicles

●       Being a good student

●       Installing an anti-theft device

●       Taking a driver training course

You have unnecessary coverage.

Be informed when it comes to your auto insurance policy. This prevents you from paying for coverage that you don’t need. For example, you may want to drop full coverage on your car once it has been paid for and not worth fixing if it were in an accident. Typically, once your car is more than 5 years old, you can reduce coverage and save hundreds on premiums. Take your time choosing your plan so that you’re not over-insured.  However, sometimes for rating purposes it may make sense to keep the coverage on so that you qualify for a better pricing tier. Your local independent insurance agent will be able to guide you more about this.

You are being charged hidden fees.

When signing with an insurance company, be sure that you understand everything in the contract. Sadly, many people skip over the terms and conditions and learn the hard way that they’re paying more than they need to. Watch for additional charges on your bill, such as convenience charges, claim fees, etc. These fees add up quickly and can offset the “better” price you thought you were getting.

Need a quote on car insurance from the Soden Agency? Contact us today and we’ll be happy to write you a free, no obligation quote. With great service and multiple discounts, we’re confident that you will be happy with us!