Money is tight these days. And unless you’re rich, it’s not really that fun to overspend. That’s why you should try and save where you can, especially with Insurance companies that are already loaded.
Think about what you could be spending all your money on. Think about all the things you would want to buy or spend money on if you wanted to.
Car Insurance Companies Always Try To Get You To Overpay For Things You Don’t Need
Drop car insurance coverage that you don’t need. If your car is a clunker, it might be time to drop collision and comprehensive insurance. These pay for damage to your vehicle. Collision coverage pays to repair damage to your car if it crashes into another vehicle or object, or flips over. Comprehensive coverage pays if your car is stolen or damaged by storms, vandalism or by hitting an animal such as a deer. But why would you care about that? Why would you need either of these types of coverage if your car’s a beater?
If your car is worth less than your deductible plus the amount you pay for annual coverage, then it’s time to drop them. Collision and Comprehensive coverage never pay out more than the car is worth. That’s one way that insurance companies know how to get ya!
Think about whether it’s worth paying for coverage that may reimburse you only a small amount if anything.
But also, if you do drop collision and comprehensive, remember to set aside the money you would have otherwise spent. Put it in a fund for car repairs or a down payment on a newer car once your clunker conks out.
You Should Use The Money Instead To Spend On Everything Else In Life
When you overpay for things you don’t need, you have much less of this money to spend on all the things you want instead. You could instead be spending it on clothes, food, shopping, friends, going out, movies, travel, vacation, etc. There are endless things I’m guessing you would rather be spending your money on instead. Don’t let these insurance companies take advantage of you, just because you don’t know how to start saving with them.
Americans are still grappling with the worst inflation in roughly 40 years, and many are changing their spending habits to keep up. In May, prices were 8.6% higher than they were a year ago, according to the Consumer Price Index report from the U.S. Bureau of Labor Statistics. Some of the biggest drivers were increased costs associated with food, shelter and energy.
Due to these price increases, 61% of Americans saying they’re worried about their financial situation, according to a survey of more than 1,000 adults conducted by Toluna from March 23 to 29. Many Americans now expect they’ll have to spend more on a range of purchases, from personal care and home improvements to experiences such as vacations.
Car Insurance Companies Expect You To Be Lazy & NOT Shop Around
Instead, you should do the opposite. Go shop around. Car insurance companies expect you just to pick a company, pay for it and leave it and forget it. They expect you just to pay for it, because you need car insurance to drive. It’s not until something happens that we usually go to look at our car insurance and see what we’re covered for and what we’re not. Meanwhile, we may have already paid hundreds of dollars in coverage, when we could’ve maybe gotten the same deal somewhere else for cheaper.
In fact, good drivers with good credit can save more than $150 a month. On average, this is what it would cost by switching from the most to the least expensive insurer in their state. And savings can be even bigger for drivers with a recent at-fault accident or poor credit. On average, it’s about $250 and $400 a month on average.
But the company with the lowest rates in one state can be the most expensive in another. And the cheapest company for a good driver with good credit might not be the cheapest for someone with, say, a DUI or a recent accident. To lower your car insurance rates, get quotes from several companies once a year.
Car Insurance Companies Expect You Not To Know About or Ask For Discounts, Even Though You’re Entitled To Them
Every insurance company offers special ways to save on your car insurance premium. Make sure you’re getting all the discounts you’re entitled to. Check out your insurer’s discounts page and ask your agent to review your possible savings.
Search for car insurance discounts online. Understand what all the different types of discounts are. Get more details on what insurers offer for different discounts in your area. They will vary from city to city and from state to state. But remember to compare quotes based on your own situation. Just because an insurer offers multiple discounts, it doesn’t mean they offer the lowest overall price.
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