Cutting your car insurance bill in half is a simple process that requires one phone call. After asking around about what friends and families pay for their insurance, I realize I was paying pretty a high rate. I decided to figure out why, but also see if I could find cheaper rates.
I went on my insurance company’s website to request a quote with the same coverage I currently had. When I received the online generated quote, I realized that I could nearly cut my insurance bill in half. I decided to follow up and give my insurer a phone call to learn more. The agent informed me that I was paying for full liability coverage of up to $500,000. I unfortunately never realized that since I was on my parents plan and never looked into it. I was on their policy which had the highest coverage possible. I didn’t have any assets at the time, so I could greatly reduce my rate (roughly in half) by moving off the family plan and onto my own, since I only needed coverage for roughly $25,000 (instead of $500,000).
Don’t be afraid to pick up the phone, call the insurance company, and ask to see what discounts are available. You can also call competing companies to see what they have to offer. There’s a good chance you will find lower rates with competitors that you can use as leverage if your current insurance company doesn’t offer lower rates initially. Also make sure you get the right coverage to cover your assets and personal liability. For example if you are currently on a family plan, look at rates if you had your own plan. Especially if you are paying for a maximum coverage plan of say $200,000 in assets when in reality your assets are a lot less. I was able to use this strategy to get coverage for what I needed (not the family) and cut my rate from $205 to $75.