Review Your Policy for Cheap Auto Insurance Rates

Article by Chris Robertson

It’s not unusual for people to look for cheap auto insurance rates when they first insure a new car, but few follow up at renewal time to make sure they’re still getting the cheapest auto insurance rates possible. One of the best times to reduce your current premiums is the time when most people expect their insurance premiums to go up – renewal time. If your policy is up for renewal soon, or if you’ve already received your insurance policy renewal, these tips can help you find savings in your current policy, or find cheap auto insurance rates with another company online.

First, find the declaration page of your insurance policy. It may also be called a summary page. It usually looks like a chart, and lists all of your insurance coverage. It will list who is covered, and for how much, and should also tell you which discounts you are receiving on your policy or which ones you may qualify for. If there’s anything you don’t understand, contact your insurance agent for an explanation. If you bought cheap auto insurance through the company directly, contact their customer service department and ask them to explain it to you.

Look over the mandatory coverage entries. Every state requires a specific amount of coverage for bodily injury and property damage liability. In some states, a policy that only covers these minimums offers the best cheap insurance rates you can get. This coverage protects you from financial damage if you’re involved in a car accident that causes property damage or bodily injury. In many cases, those compulsory limits may be too low, but you can keep it low if you consider an umbrella policy that provides additional personal liability coverage. An umbrella policy may be cheaper than carrying additional liability coverage on your auto insurance policy.

The optional insurance policy includes many different types of insurance, including collision insurance, which pays for repairs to your vehicle if you’re involved in an accident that is your fault; uninsured or underinsured motorist coverage, which covers the cost of repairs to your vehicle if you’re involved in an accident with a driver that doesn’t have insurance; and loan lease coverage, which may be required by the lender if you have a loan outstanding on your car. Those three types of insurance are usually worthwhile, but many other optional insurance types cost more than they’re worth – or are available through other means. For example, your policy may include coverage for towing and labor which is cheaper through a roadside assistance company, and limited coverage, such as glass protection. If you’re looking for cheap insurance rates, eliminating duplicated or unnecessary coverage could save you a considerable amount on your annual premiums.

Finally, look over your discounts and credits. These will vary from one insurer to the next, but may include multi-policy discounts if you insure your home and auto with the same company, discounts for insuring more than one vehicle, discounts for buying your auto insurance online, discounts for paying your auto insurance in full – even discounts for maintaining high grades in your college classes. You’ll also find that safety features such as airbags and parking assistance systems can help you get cheap auto insurance rates.

Once you go over your policy to find ways to save money, call your insurance agent to discuss possible discounts – but don’t let loyalty blind you to the cheapest auto insurance rates. Look online for cheap auto insurance rates at websites that allow you to submit multiple quote requests to find out if other companies can give you a better deal on your auto insurance.

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