Insurance Rates: Keep Christmas Affordable

The Car Insurance Dilemma

So how do I get the best car insurance rates? Car insurance is one of those great mysteries of life that leaves us with far more questions than we have answers. Where do I buy car insurance? How much of a deductible should I have? What does my insurance policy cover? At the same time, researching car insurance is hardly a job we look forward to during our precious time at home! For many Americans, they’ve been using the same provider for years (even generations!) and they’re not about to look into changes when the latest episode of Duck Dynasty awaits! But keep in mind that an old insurance policy COULD be a lot spendier than you imagine. Try thinking of it this way, if you could save $200, $500 or $1000 on annual car insurance policies, what would you do with that money? I’m thinking it could pay for Christmas next year!

I’m not going to be able to give you a treasure map to the best rates on car insurance. Sorry. What I can do is offer you tips that have worked for a whole lot of other people. One prime tip is one few people know. Your insurance company does not have to notify you if your rates drop. As long as you’re happy, they can just keep on auto-billing you at your old rates, and for more than a new customer would pay. That extra cost can add up significantly as factors that affect your insurance costs fluctuate as your lifestyle changes. Make sure to call your current car insurance policy holder yearly (or today if you haven’t done it in quite some time!) and see if the rates they offer can be lowered. We think you’ll be shocked to learn that the burden to confirm price reductions is on the customer, in case of ongoing policies such as car insurance, cable, and life insurance. (Read More) That means a simple call to your insurance provider could reduce your monthly costs significantly. In some cases, by 50%. So be powerful, make a phone call, and start a Christmas savings budget all in the same fifteen minutes. Yes. You. Can.

Should I raise my deductible?

Whether or not to raise your car insurance deductible is complex question. It depends on your driving history and how much money you have in savings, among other things. What isn’t complex is the savings you CAN find with small changes to your deductible. As USA today reports, A change from a $200 deductible to a $1000 deductible can save you about 40% on most policies.
So yes, consider changing your deductible. Especially if you are far more concerned about large accident costs than an occasional ding, dent or broken window.

How does my zip code affect my car insurance rates?

It’s really disappointing, but no matter how good your driving record is you may pay more or less for your car insurance policy based purely on your zip code. Car insurance companies charge partially based on the claims records THEY have received in your zip code. That’s why it’s so important to call a variety of insurance companies. Those who have had more claims filed in your area will automatically offer you a higher rate than those who have had fewer claims filed in your zip code. Doesn’t necessarily seem fair, or intuitive, but it’s a way that insurance companies pay off their bills every month, by calculating their risks. So make sure you shop around, using your zip code in the process. And statistically, if you live in Maine or Arizona, you may find yourself among the few cheapest zip codes for car insurance, anywhere!

Compare Auto Insurance Rates by Zip Code Here

So what are the best things I can do to lower my car insurance rates?

Start by confirming that your current auto insurer is offering you their lowest possible rates. Then move on to using rate comparisons using your zip code. Check by internet and follow up with a phone call if necessary. (Just remember that if you are talking to an insurance agent they may be working on commission which makes them less likely to be motivated to offer you the very lowest price – ask them!) After that, look into changing your deductible to an amount that you can live with. You may be able to put up with a higher deductible and save a big pile of cash in the meantime!

Save money on insurance rates in time for Christmas http://t.co/slVKCIH2gw #Insurance

— InsuranceQuoteDepot (@insurancebyzip) November 27, 2013

Of course I haven’t even talked about the many simple tips that every single driver should be practicing: drive safely, consider a car alarm, group your home and car insurance for lowest rates, and buy a vehicle that is less costly to insure. Plus, simply drive less!

That’s because I’m assuming you’re like me: An average American, reading this on the commercial break of your favorite show, and looking for the fastest, easiest way to save a bit more money on your car insurance, without completely changing your lifestyle. Here’s to next Christmas, a Christmas with more cash to spend!