Insurance can be quite expensive for some people, however many times, the insurance companies are overcharging their customers for a variety of reasons, some legitimate, and some not. High insurance premiums can mean the inability to own a vehicle for some people, and there are ways to combat these ever-rising prices with some key questions to the insurance broker or company that can save you hundreds of dollars on your car insurance.
One of the main ways that an insurance company can overcharge their customers is by not offering savings plans to them. Most insurance companies offer lower rates if they hold more than one insurance policy for a customer, such as multiple vehicles, home or life insurance. Many brokers will not offer these deals to their customers as it affects their commissions on insurance policies sold. Ask your insurance agent about discounts offered by insurance companies for multiple policies.
Another way to combat high insurance premiums is to increase the deductible amount on the insurance policy. A deductible is the amount of money payable by the insured when a claim is made in an at-fault or no-fault accident. Increasing the deductible amount will lower insurance premiums. Many insurance companies and brokers discourage this as a way to beat high insurance premiums and offer the lowest deductible on insurance policies. When you view a car insurance quote, itâ€™s important to check out the deductibles that are on the policy and to choose based on affordability for premiums and in the event that there is an accident.
Previous at-fault accidents and moving violation tickets, such as speeding tickets, can also increase insurance premiums. Most customers freely give this information to their insurance broker or company, even when itâ€™s not required. In most states, moving violations and at-fault accidents only stay on your driverâ€™s license for three years; however some accidents can stay on your license for up to seven years. Other insurance claims, such as comprehensive claims, are often charged against a customer, even though most often, these claims have no fault assigned to them and should not cause high insurance premiums. Be sure to have your driverâ€™s abstract up to date to give to your insurance agent when getting new insurance or renewing a policy.
The best way to beat high insurance premiums is to ask questions of the agent and ask for quotes from many insurance companies. This will help ensure that you have comparisons available to make the best choice. Many insurance agents will only quote one company to you â€“ ask for several so you can choose the policy that best fits your needs and not the commission needs of your agent or broker.