There is no such thing as one-size-fits-all auto insurance. While this can save you some money, in theory, most people pay too much for their policy.

 

If you haven’t paid much attention to your car insurance premiums over the last few years, there’s a good chance you’re paying more than you should. Car insurance companies are crafty and will find ways to overcharge you – if you let them.

 

10 Signs That Your Current Auto Insurance May Be Too Expensive

 

Luckily, we’re not going to let your insurer overcharge you for coverage. As auto insurance agents, we know the ins and outs of the industry. We’ve seen where other companies overcharge and we know what to look for.

 

So here are ten signs your current auto insurance is way too high:

 

 

• You’re Not Bundling

 

 

It may seem like a sales tactic or a gimmick, but it’s not. If you bundle car, home, and other insurance policies with the same insurance company, you’ll often get a huge discount compared to buying each policy individually.

 

If you’re a single individual paying for your car insurance policy and not bundling, there’s a solid chance you’re vastly overpaying.

 

 

• You’re a Habitual Canceller

 

 

Insurance companies reward reliability. If your policy has been canceled in the past, then you’re seen as a risk and unreliable. This usually stems from a failure to provide requested information or a non-payment of bills. Insurance companies always charge more for people they view as unreliable.

 

To ensure you don’t accidentally cancel your policy, you must always open all bills you receive from your insurance company. Never just throw away something from your provider. If you’re forgetful, also try to set up automatic payments.

 

 

• Not Driving That Much

 

 

If your insurance company thinks you drive more than you do, you’ll end up paying more for coverage than you should. When you start to insure a car, the company uses your mileage to calculate how much you drive each year. People who drive more, pay more. If you don’t drive that much than your coverage will be cheaper.

 

If you want to make sure you’re not overpaying, try to get the figure of how many miles your insurance company thinks you drive each year. Then calculate how much you do drive. If it’s less than the insurer’s figure, you’re overpaying.

 

 

• Why Not Liability?

 

 

Newer cars should always have full coverage. But that 1994 Pontiac of yours? You’d be just fine switching your full coverage to liability on any older car. Sure, full coverage will cover your repairs in an accident, but the math simply doesn’t add up.

 

If you have a car that probably isn’t worth fixing if it was in a bad wreck, then full coverage is a waste of money. You’re overpaying for car insurance if you have full coverage on a “junk” car.

 

 

• Little Legacy

 

 

Remember how we talked about insurance companies rewarding reliability? If you have a long history with one insurance company, then they will reward you with better rates over the long haul. Or they should.

 

If you’re working with an insurer for the first time, there’s a good chance you’re overpaying. Some insurance companies even let parents pass their policy history down to their kids, which can offer huge savings.

 

 

• Young Drivers Cost More

 

 

You’ll always overpay when you add a teen driver for your auto insurance policy. That’s just how the insurance industry works. If your current provider tries to charge you an arm and a leg to add your child, it may be time to get some quotes from competitors.

 

Another way to save money on auto insurance is to list your kid as an occasional operator of a car instead of a principal driver. There are discounts for good students with great grades, as well.

 

 

• Your Zip Code

 

 

If you live in an area that has a track record of theft and vandalism, then you’re probably paying extra for auto insurance coverage. If you live next to a busy intersection that sees a lot of accidents, you’ll pay more, too.

 

There’s not much you can do here. While it’s a sign you’ll be paying a lot for coverage, there’s not much that can be done to combat this fact – outside of moving to a new address.

 

 

• You’ve Filed Expensive Claims

 

 

Some insurers even increase your premium when an accident wasn’t your fault. If you file a claim and a large payout was made, there’s a chance your premiums have skyrocketed.

 

While this may not seem fair, that’s the industry. If you want to make sure you don’t pay too much for premiums after an accident that wasn’t your fault, make sure the companies record it as a “no-fault” accident on your record.

 

A no fault accident is rated at 0 points on your driving record, while an at fault accident carries 3 points, on average.

 

 

• Lost Vehicle Safety Discount

 

 

Certain vehicles get discounted coverage from different insurance companies. If the company finds your vehicle has been in more crashes as of late, they may remove the vehicle discount from your car.

 

There is absolutely nothing you can do here. If the increase is too much, you’ll want to shop around and see if another company can offer you a better deal.

 

 

• Bad Driving Records

 

 

Insurance companies always charge people with bad driving records more for premiums. If you’ve been in crashes, gotten a DUI, or have a history of getting speeding tickets – then you’ll likely pay extra for auto insurance.

 

You will pay too much for auto insurance with a bad driving record. That’s just the way things work. A good course of action is to shop around and see if you can find a deal.

 

Just make sure to ask any company whether they’re using your record before giving you a quote. If not, you’ll end up paying more in year two – once they find all your driving history.

 

Are you Paying Too Much?

 

Auto insurance is complex and intricate. There’s a chance you’re paying too much, especially when all the factors are taken into consideration. The smartest thing you can do is sit down with a professional agent and see if there’s any way you can save some money on coverage.

 

Please contact our team at ProtectiveAgency.com or call (877) 739-9367. Our licensed insurance agents will be happy to answer any questions you have.