It is common for car owners to pay more than they need to for an insurance policy. There are many reasons for this, but the following are three of the most common.
Carrying more insurance than you want or need
When you buy an insurance policy from a local agent, it is likely that you will be paying for coverage you don’t want or need. This is because agents make money on commissions, and it makes sense to sell as much insurance as possible. The best way to get around this problem is to first decide what coverage you need, and then get several quotes for your requirements. This can easily be done online. The last thing you want to do is to get a single quote from a local agent. You will likely be getting too much coverage, and this translates into a more expensive policy.
Not giving yourself an annual car insurance checkup
Take the time to reevaluate your insurance needs at least once a year. One common problem is for a car owner to be paying on a policy for a vehicle that is being financed. The lender will require full coverage, because the car is collateral for the loan. However, once your car loan is paid off, you may not need full coverage. This is especially true with a car that was used when you first bought it. Whether there has been changes or not, you should always request several california car insurance quotes online after you have done an annual reevaluation of your insurance needs.
Putting off shopping for lower rates
Thinking you need to wait until your current policy expires to switch insurance providers is a common mistake. If you are paying too much for your current policy, you can switch to another insurance company and save money. You are not required to wait until your policy ends. In fact, if you have prepaid on your policy, you will be entitled to a refund for the amount that you paid over the amount due at the time you switched to another carrier. This type of thinking also leads a person to put off quoting on new insurance. Continuing to keep expensive car insurance is money out of your pocket that you could use for something else.
If you haven’t looked at your coverage recently, you need to take out your policy and look at exactly what is insured and compare that to what you need. Do this as soon as possible, and do it every year. Follow this up with several quotes, and you will be paying the lowest amount possible.
