It is fair to say that the amount of money you have can determine what you can buy. However, money isn’t the only factor that affects your choices. Here are some of the reasons that can make you more comfortable with a cheaper car insurance policy, providing you don’t lose valuable coverage. Need to Save Money When you realize that you don’t have enough money to buy all the things you want you need to start looking into items in your expenses. Besides you need to put some money aside for the future. A little money you saved today have the potential to amount up to thousands of dollars in the near future, if you invest smartly. You wouldn’t probably like to discover in ten years that all those money you generously spent on expensive vehicle insurance would have been very handy. Great Driving Records If you haven’t had an accident for years you are probably a careful driver. That reduces your likelihood of making an automobile insurance claim and need for an ironclad policy coverage. Insurance is all about risk. You are already covering your risks by buying a policy and most insurers and policies would be good enough to pay for your losses should something happen. For avoidance of confusion, we are not talking about not insuring your vehicle but finding a cheaper provider for the same coverage. Living in a Low Risk Area Living in a safe neighborhood, having a garage and having mild weather may reduce the worries you have. It is only smart to buy the best policy you can get when the risks are high and be more relaxed about who insures your car when the risks are low. Being Claim Shy Policyholders feel differently about making a claim. A few drivers would only make a claim when they cannot handle the losses on their own while some might want to claim for anything and everything. If you don’t intend to make small claims you might as well save money by setting deductibles higher. Also you might want to find a cheaper but still sound insurer instead of the most expensive ones. Not Driving Much to Justify the Costs Many motorists keep cars for convenience even though they prefer public transport for getting to their work and around. When you are not driving much you are less likely to have an accident. Then, you may be justified to look for more affordable coverage. Otherwise, you may end up paying too much for that convenience. Can’t Spare Money for Over-Protection It is nice to have a policy that takes every risk into account and insures them. However, you will be paying much more for such coverage. For example, would you need Rental Reimbursement Coverage if you can manage without an alternative car should something happens to yours? You should think about every item in your coverage and decide if you need it. Next step is to check if you can economize by dropping such coverage and discounts are worth the drop. Your Loyalty May Not Be Paying One of the reasons why people stick with their insurers even though they are more expensive is that they believe their loyalty will pay off when they have a claim. There is no evidence to suggest that insurers treat their long-established customers differently. In most cases they wouldn’t even look at how long you have been with them. Furthermore, new customers may be getting the most advanced and economical policies while older customers are still kept in expensive price plans with no improvements to their policies. Privilege Isn’t Worth Paying for Having an established brand name is a valuable asset and some companies bank on their good name to charge more. Some of them act like it is a privilege to be insured by them. You should check how much this privilege costs you and if it is really worth paying extra money. You should give other companies a chance to quote for your business and compare. There is a high chance one of them will impress you enough. In Charge of Your Finances and Able to Compare Information is available freely online and easy to get informed about any subject these days. Also people are keener to look into their options in details lately. There are so many discount and saving opportunities to take advantage of. For example bundling your home and car insurance policies may save you money. When you look deeper into your finances you are likely to find a better solution that saves money. Why Not If You Are Not Loosing Out. Why should you pay more if you are getting the same coverage cheaper somewhere else? Remember that a cheaper policy is only cheaper if it is offering the same coverage. So, you should always get a quote for the same coverage and make a like for like comparison. ...read more