3 Things Mom Never Told you about Auto Insurance
Your mom likely told you several things about auto insurance to prepare you for the real world. However, things have changed dramatically in recent years, so you should use that to your advantage. Here are 3 important things that your mom likely didn’t tell you about auto insurance.
Is your Credit Score Increasing Premiums?
More and more auto insurance companies are taking a close look at your credit score. They use it to determine your premiums. If you have a low credit score, they assume you are a higher risk. This doesn’t really make sense, so don’t let them do it to you. Avoid working with any such company. Ask questions and work with a company that doesn’t use your credit score against you.
Get the Coverage you Need
Auto insurance has plenty of variables today compared to what it did long ago. The coverage that you select can influence how much you will pay. Find out what is required by law for coverage Next, think about any additional forms of coverage you may want to have in place. Don’t pay for coverage you don’t need or that you will never use.
Don’t let an agent talk you into additional coverage you don’t want to pay for. Routinely examine your coverage too. You may find that you are ready to modify what you have in place. For example, you may be ready to reduce a vehicle coverage from full to liability only. Don’t assume the coverage you have always had is going to apply to your current situation.
Try to Negotiate
Chances are, your mom took the price that was offered to her on auto insurance by her local agent. Today, you have so many more choices. Take the time to look around and to negotiate what is offered. Talk to local agents and compare rates online. Look for discounts too such as multi vehicle discounts and combining your auto with your homeowners insurance.
If you want to stay with a particular agent, but the cost is more, talk to them. Tell them that you are going to change your policy to another provider. Let them know you can get the same coverage for less. There is a very good chance they will match that price in order to keep your business.