You shouldn't stick with your car insurance for more than one year.
The good news is that there's always room to save, especially if you use the Jerry
app to shop around and find the right deal. But, how do you know if you have the right type of car insurance? Here are some questions to ask.
Does I really need collision insurance?
This might be the most common way people overpay for their insurance as many older cars simply do not give the best return on investment when it comes to collision insurance
. This is the type of coverage that will assess the value of your car in the event of an accident, and repay you based on that assessment minus your deductible. While this is imperative for newer cars, for ones that are 10 years old or older you might end up losing money after a crash. If your premiums with collision insurance are more than 10% of the total assessed value of your car, then you’ll probably be disappointed with your payout after an accident. Talk to your car insurance agent about the value of your car and ask them if they think you’ll save money in the long run by removing collision insurance. The money you save from dropping that coverage can be used to save up for a newer car.
Am I getting the best savings for safe driving?
If you don’t drive that often and believe yourself to be a safe driver, why should you pay the same for road warriors burning the midnight oil? In the past five years, American drivers overpaid
more than $100 billion for car insurance, which has led some insurance companies to offer usage based insurance programs. This allows for increased savings for people who drive less than 12,000 miles a year, don’t drive at night, and avoid potentially dangerous situations like excess highway speeds. If you’re a safe driver living in a low-mileage, urban environment, talk to your car insurance agent about usage based programs. You might be able to cut a lot off your premiums.
Does your car insurance company know of recent life changes?
If there are any major changes in your life, your insurance company should know about it. Most providers offer discounts for life changes and can even bundle your car and homeowner policies together for increased savings.
There is no one-policy-fits-all for car insurance. Getting the coverage that’s right for you means knowing what milestones affect your rates and what you can do to lower them.
If you want to streamline the whole process, try using the Jerry
app. A licensed broker, Jerry does all the hard work of finding cheap quotes from the top name-brand insurance companies and buying new car insurance. Jerry will even help you cancel your old policy. And to ensure you always have the lowest rate, Jerry will send you new quotes every time your policy comes up for renewal, so you’re always getting the coverage you want at the best price.
Saved $725 annually
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