Saving Money beyond coupons- Shopping for Insurance to save big $$.

This is one of the least favorite ways to save money among American consumers, however, if it is done, you can save hundreds of dollars per year.  What onerous task am I speaking of?

 

Shopping for insurance.

 

Before you jump head first into insurance shopping, contact your current carrier and ask them for a comprehensive policy review.  Ask them to review your policies with you, make sure you are receiving all the discounts that you are eligible for.

Did you know that Farmer’s Insurance offers discounts for teachers and other various professions?  Ask if your carrier offers any professional/vocational discounts.

Ask questions about coverage if you have questions.  Don’t be afraid to remove or add coverage if you feel that it is warranted. Raising deductibles for Comprehensive and Collision coverages will save you money on your premium.  Raising your homeowners/renters/condo unit owners’ policy deductible will also lower your premium.  In some cases, raising your deductibles from $250 to $1000 can lower your premium as much as 20% per year!

Once you have spoken with your current carrier and had a review, if you still feel like you could save money with another carrier, have a print out of your policy in front of you and start the rate shopping.

In order to see the savings, you should request an apples to apples quote.  Obtain quotes that are identical to what you currently have, or if you have received a quote for policy changes (such as increased deductibles).

 

You will need to gather the following:

• A copy of your current auto insurance policy, or a copy of the quote with the changes to coverage you want to make from your current carrier.


• The year, make and model of all of the vehicles.


• The VIN (Vehicle Identification Number).  Found on most insurance paperwork, like your insurance ID cards.  Also on the car in the drivers side door jamb or in the front drivers side dash.


• Your homeowners, renters or Condo unitowners insurance policy.


• You will need to know basic info about your dwelling (Year built, square feet).


• Any other insurance policies you want quoted and basic information about the item(s)/dwellings that will be covered. (Examples: Boat, RV, mototcycle, rental homes, jewelry, collectibles, business insurance, life insurance, health insurance, long term care insurance, etc.)

There are companies, such as netquotes.com, that allow you to shop several auto insurance companies at once.

If you or a family member have honorably served in the military (any branch), you might want to check out USAA.com for quotes.  We have our auto and renters insurance with USAA and we save $300/year over what I was paying with State Farm!

Other companies such as Wawanesa, Geico, 21^st Century offer low rates because they have low overhead- no local agents or walk in offices on every corner.

If you have AAA or towing coverage through your cell phone carrier, consider dropping the towing coverage that your auto insurance carrier offers.  There is no reason to pay for the same coverage twice!

If you decide to stay with your current carrier, and you have a local agent, be aware that they sometimes can offer other services and perks beyond sending you your insurance ID cards one or two times per year.  If you are planning on traveling, drop by your agent’s office and see if they have any atlases or maps. (State Farm Agents Frequently have very nice, large atlases in their offices for policyholders, you just have to call ahead and ask.)

Did you know that February is Earthquake Awareness Month?  Your agent may offer freebies related to this event, such as new water heater straps.  Other times during the year, agents may offer new dryer vent kits (faulty dryer vents are  huge fire liability) or other freebies related to safety “holidays”, such as child safety kits that include a fingerprinting kit for Child Safety Month.

Most agents offer the “usual” freebies: Wall and pocket calendars, pens, memo pads, and magnets.  Don’t be afraid to ask.

Remember to talk to your insurance representative before making any changes.  They are professionals, trained in risk assessment; they aren’t just out to “get your money”.  They have seen what happens when clients don’t have enough coverage and a claim occurs.  You really aren’t saving any money if you are underinsured, a claim occurs, and you are stuck paying hundreds of thousands of dollars out of pocket.



Links to Insurance carriers:



Netquotes.com

Wawanesa.com

Geico.com

Statefarm.com

Allstate.com

Farmers.com

USAA.com

21^st.com (21^st Century Insurance)



(The carriers above may not be admitted to conduct business in every state, please check their websites to see if coverage is available in your state.)



And finally, here is a very good article about tips for shopping for auto insurance.  Some of the coverages that it discusses may not be available in every state.