6 Reasons You Are Paying Too Much For Your Car Insurance In 2011

A lot of people overpay for their automobile insurance without ever realizing it. In fact, to some people, it’s not even a big deal – not something they really give a second thought. When you think about it, though, the average person will be paying car insurance for fifty years!

That’s quite a long time, and if you overpay for all fifty of those years, think of how much money you’ll lose out on in the long run. In order to stop overpaying for automobile insurance, you first need to figure out why you are overpaying. Thus, we’ve compiled the six most common reasons people pay too much for their 2011 automobile insurance:

1. Hasty Decisions: The number one reason people pay too much for their automobile insurance is simply because they didn’t put in the necessary time and effort it takes to find a good provider and an affordable policy. If you’re like most people, you probably just called up the first provider you found and set up automobile insurance in a hurry.

This, however, is a huge mistake. In order to get the best and most affordable insurance, you have to devote time to the process. First, get a list of all the licensed insurance providers in your area from the state transportation department or its equivalent. Then, narrow that list by reading online reviews written by past or current clients of the provider and by checking out the website and general company reputation.

Then, from your newly narrowed list, request free rate quotes from each provider and take the time to compare them thoroughly before making a decision. Remember that price isn’t the only factor you should consider; level of coverage, customer service, company accessibility, and other factors are also important.

2. The Bare Minimum: A lot of people think that they can save money by simply choosing a policy that just barely meets the minimum automobile insurance requirements for the state. The truth of the matter is that these policies don’t really save you money in the long run.

In fact, they are a surefire way to overpay for insurance that is virtually useless to you in the event of an accident. When you have insurance that doesn’t really offer you coverage, you’re basically paying for nothing, and you’ll be all alone in the event of an accident. So, make sure your coverage is actually worth paying for.

3. Being a Snob: A lot of people end up paying more than they have to for auto insurance, simply because they refuse to consider any provider except for the major ones like GEICO, All State, Progressive, and others. While many of these companies are good, those who live in towns with smaller, more local providers may be able to get an even better deal.

Smaller companies often offer excellent, affordable rates in an effort to try and compete with the competition. If you pass them over just because they’re not a giant company, you could end up paying a lot more than you should.

4. Missing out on Discounts: One of the biggest reasons people overpay is because they simply don’t know that certain discounts are available to them or because they have gone with a provider that does not offer the discounts.

If you are a good driver, meaning you haven’t had any accidents or traffic violations in the last year; if you’re a minor with good grades; if you have safety or anti-theft features on your car; if you drive a hybrid; and if you have a car with low mileage, all of these things and others can earn you a discount with the right provider. Sometimes, however, it is up to you to ask your provider about discounts, so don’t be afraid to speak up.

5. Past Mistakes: If you’ve gotten speeding tickets or been in a wreck recently, your insurance probably shot through the roof. You might have thought this was just something you were stuck dealing with, but that’s not the case at all.

Talk to your insurance provider about what you can do to lower rates. Sometimes, just having a birthday, and leaving a certain “at risk” age range can help. Other times, taking a defensive driving course or some other form of driver training will be helpful.

6. Getting Stuck in Your Ways: If you’ve had the same insurance provider for years, chances are you’re overpaying. Even if you’re not, you’d never know it unless you take the time to check.

It is very important that no driver gets “stuck in his or her ways,” meaning that he or she keeps the same policy and pays the same rate for years at a time. Instead, it is important to periodically compare rates and go through the search process once again, just to make sure that great deal is still great.

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