Car insurance companies spend a lot of money to convince you that you’ll save money by getting insured through them. While hype abounds, it isn’t always easy to know if you’re actually saving money. Here are some key ways for you to tell.
The typical car insurance policy runs 6 months to a year and you’re not obligated to stay with any company. Anthony Clark Insurance Brokerage, a Calgary auto insurance provider, recommends getting quotes from other insurance companies when your policy is coming up for renewal. If the quotes come back higher than what you’re currently paying, you’re saving money. A quick word of warning, you should be sure to specify the levels of coverage you want. If you want more than just basic liability coverage, it can change your quote dramatically.
Check the Discounts
Most insurance companies offer a number of discounts, but the discounts aren’t always identical. Look at the discounts offered by your company to make sure you’re taking advantage of all the ones you qualify for. Look to see what discounts the competition offer. Insurance companies sometimes make arrangements with specific organizations, such as alumni associations, professional associations and unions, to provide discounts to members that can drop the premium below what you currently pay.
Check with Your Employer
Businesses often negotiate a discount or group rate on insurance for employees, but that information may be tucked away in the back of an employee handbook or forgotten during orientation. Ask your employer if they have an arrangement with an auto insurance provider and, if so, how to go about securing the discounted rate. Alternatively, your bank may offer a similar deal to its members to get discounts on auto insurance policies. If you’re stilling paying less than the discounted rate, your company is saving you money.
Ask if your insurance company offers combined coverage for auto and home. Combined policies often come with a nice discount, as much as 15% in some cases. If your company doesn’t offer combined coverage, you may well be paying out more than you need to for both car and home insurance.
Determining whether or not your car insurance is really saving you money does take some legwork. You need to compare rates, discounts and policy options across companies. You also need to investigate whether your employee or an organization you belong to offers a better deal. If you do the legwork, though, you can know if your insurance saves you money.