Steps to Making Car Insurance Affordable

In most situations you will not be picking up telephone calls from insurance companies explaining how you can make your car insurance affordable.  Car insurance companies get fat with profits by rolling over your auto policies every 6 months and keeping your price the same or even increasing how much you pay for vehicle insurance.  By understanding how insurers profit bellies swell you will be in a much better position to find affordable car insurance.

What Happens Over a 6 Month Policy

We all have so many things on our plates the last thing we have time for is updating our auto insurance policy.  It is so much easier to roll over our policies and keep the same pricing.  In many situations this is a mistake and we will end up over paying.  Time is the greatest ally to receiving lower rates on our car insurance.  As 180 days elapse our cars have depreciated and the value can drop by 10% or even more.  Insurance companies like this because the value of our cars drop and the cost in many cases stays the same.  We also undergo other changes such as moving violations falling off our record, improvements to credit score and changes to the amount we need to drive on a monthly basis.

How 5 Minutes Every 6 Months Pays Dividends

It is extremely difficult to keep track of all the changes we undergo during the 6 months of our policies.  If we have not filed a claim or have added a moving violation to our driving record there is a very good chance our rates will drop as we renew our policy.  Spending 5 minutes on the internet getting refreshed quotes will help show how your driving risk may have changed.  If your rates drop by 20% you could end up saving $100 over a 6 month period.  Another good tip to affordable car insurance is think local.  As insurance is regulated by state governments it will help to look at programs and discounts of where you drive.  For example, in California, the state has a low cost program that can help lower rates.  It will also be beneficial to look directly at affordable car insurance tips in California.  For additional states look to your state insurance web site to get specific details.

In summary, just remember how often you get a call from your insurance company checking up on you to see if you can capture lower prices.  Finding a few extra minutes is good way to transfer dollars into your pocket as opposed to some large insurance organization.

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