Having a suspended license is an unfortunate situation with all sorts of unwanted consequences. Whatever the cause and no matter how earnestly you strive to be a better driver and make more responsible decisions, the hard reality is that you are going to see a spike in your car insurance rates. Part 1 of this article describes steps to follow after your license is suspended, and Part 2 shows you how to comparison shop for better rates to save your budget.
Part 1 of 2: What to do in the aftermath of a suspended license
Step 1: Step back and look at the big picture. While it’s true that having a suspended license is stressful and financially difficult, realize that it’s not the end of the world.
By looking on the bright side, you’ll approach the process in a rational way and you won’t make hasty decisions going forward because you are still reeling.
Step 2: Get all the details surrounding your license suspension. Make sure you know when you will get your license back.
Knowing exactly when the period of your license suspension ends will be valuable for you to know so that you can be ready to begin another policy immediately.
Step 3: Be aware of details on your policy and your rate increase. Get any information about your rates and what you can do to avoid cancellation right away.
Your rates will certainly go up, but if you’re lucky, your insurer will not cancel your policy. Becoming aware of your policy details will ensure that you do not renew your policy when there may be better rates available to you, and knowing when the policy expires will help you decide when is the best time to switch.
Part 2 of 2: Comparison shop for a better rate
Step 1: Get quotes for car insurance. Acquire as many quotes as you can based on your specific needs, which will allow you to get a broad sense of how much you will end up paying.
You may need to look into less common car insurance companies who specialize in high risk drivers in addition to the more usual companies.
Step 2: Compare quotes and narrow your selection. Perform a rigorous comparison of the quotes you receive to figure out which ones offer the best quality of service for the price.
Sizing down your options will make the process much smoother. On the basis of reputation, price, quality, and other standards which are important to you, settle on a few plans which you could be happy with.
Step 3: Negotiate a better price. The task of negotiating a price might be unfamiliar for you, but it is well worth the effort if ends up saving you on your premium.
As you prepare to speak to a representative, know what rival plans are offering and use that to your advantage. Mention how much another car insurance company has offered you and ask them to meet or beat that rate.
Even if you save just a little, it could really add up over time; and if you don’t get anywhere negotiating, at least you’ll know there was not anything more you could do.
Step 4: Capitalize on every discount. There are many discounts out there for any number of situations and circumstances, so take advantage of any that may apply to you.
Whether it is a low-mileage discount, a discount based on your line of work, or bundling discounts, these will help you keep the cost of insurance down and free up extra money for you in your budget.