Is Auto Insurance Comparison Shopping Worth Your Time?


When discussing auto insurance savings, the first thought that comes to most minds is that there will be extra room in the budget for "fun stuff." New electronics, a better car, home improvements or even an expensive vacation may be a desire for many people. You can also put your savings toward your retirement account. This will allow you to retire sooner and enjoy a more comfortable lifestyle. However, there are times when it may not be effective to comparison shop for other auto insurance plans. The following tips will help you make the most of your time while saving money on your auto insurance when possible.

Cut Your Insurance Costs

You should revisit your auto insurance policy once a year to make sure you are getting optimal coverage for a small out-of-pocket cost. There are several things you can do to save money. Compare policies from several insurers. Don't jump for the policy with the lowest up-front premiums. Compare coverage amounts, deductibles and other aspects of each policy. The policy with the cheapest premium may not always be the cheapest in the long run. You can also increase the deductible amounts on your current policy, to shave a few dollars off your premiums. 

Watch Your Credit Score

Your credit score has a huge impact on your insurance premiums. Insurance companies check clients' credit scores - studies have shown a correlation between low credit scores and a high number of insurance claims. Take care of your credit, make sure all your payments are made on time, and keep your credit usage below 30% of your available credit. Check your credit report from the three major reporting agencies on a regular basis to ensure nothing is being reported incorrectly. In addition, don't comparison shop for insurance plans more often than once per year, or when you have a major life-changing event such as marriage or divorce. Comparison shopping too often can put too many inquiries on your credit report and cause your score to tank.

What Is Your Time Worth?

Shopping for auto insurance can take about an hour each time you sit down to compare rates. Consider how much your time is worth, in comparison to how much you expect to save from changing your insurance plan. If you are not going to save a sizeable chunk of money, you may wish to skip the comparison shopping for now. Again, it's best to shop for cheaper policies when you have a major life-changing event, as this is when you will save the most money. Contact a local agent, like Oliveira Gilbert C Insurance Agency Inc, for more information.


23 November 2015

Learning the Importance of Renter's Insurance

Having lost everything in a fire while living in my very first apartment, I learned the hard way just how important renter's insurance was. I did not have any renter's insurance and had no idea that it was something that I needed to have. I had counted on the owner's insurance to cover the cost of replacing my belongings if something like that would happen. Boy, was I wrong. The apartment I moved into next was owned by a much more helpful man. He actually helped me find the insurance company to open a renter's policy with. Now, I have the insurance I need and feel confident that if a disaster like that should strike again, I will have the coverage I need to replace my things.