Why It May Be Beneficial to Re-Examine Your Car Insurance Policy

Why It May Be Beneficial to Re-Examine Your Car Insurance Policy

With so many things weighing on our minds, especially these days, it is easy to overlook routine monthly payments that could be costing us more than is necessary. As we go about our daily lives, we think we are being smart by setting those monthly payments like rent, credit card payments, car payments, and auto insurance payments that hardly ever change, on auto-draft. While it is the responsible thing to do, so you don’t forget and get hit with monthly past-due fees, it also does exactly what it is intended to do and takes those payments off our minds completely.

Obviously, we are grateful for this technology, granting us the ability to check several items automatically off our list each month. However, in doing its job so efficiently, many of us could literally be wasting money each month by not taking a second look at these convenient payments. One payment that most people put on monthly automatic drafts that warrants a periodic overview is car insurance.

In the scheme of things, car insurance payments probably seem trivial to most people. The national average cost of car insurance is about $133 per month. However, there are several factors that can contribute to pricing fluctuations in car insurance policies that many might not be aware of. A monthly review of your policy and the changes that may have occurred in your life could significantly increase your budget in a positive direction.

Let us look at a few common fluctuating factors that can have a dramatic impact on the cost of your car insurance.

1. Driving Record

It seems obvious that most people would understand that this could affect the cost of your car insurance. Unfortunately, as we mentioned above, many people just don’t think when they get that small speeding ticket, parking ticket, or think when they have gone without any violations for an extended period of time. It is wise to check with your policyholder to see what discounts they offer for a safe driving record.

2. Location

Due to higher rates of vandalism, theft, and accidents, city drivers pay a higher auto insurance price than those in small towns or rural areas. Where you park your car and anti-theft features may have an impact on the cost as well. So if you have moved or are considering moving, you may want to take a moment to evaluate your car insurance policy and see how it might be negatively or positively affected.

3. Status

In discussing status, we don’t mean how well-liked you are in the neighborhood. The change in status to consider for car insurance would be if you have crossed an age milestone, gotten married, became a veteran, etc. If you have recently aged over 25, that is a major milestone in car insurance for a price reduction if you have kept a relatively clean driving record. If you have recently gotten married, you could put multiple vehicles on the same insurance and that can most often than not lead to a reduction in cost.

Most of the best car insurance companies offer special discounted rates for veterans. If you have recently become a veteran, you deserve to see what car insurance reductions are out there for you. Another factor to look into is if you started working from home. By minimizing how much you use your car, you could qualify for discounts on your car insurance.

Conclusion

As you see, there are changes that can easily happen within a month that you might not have thought about affecting the cost of your car insurance, and thus, your bottom line. If you have had your car insurance through the same company for a long time, it might be beneficial to do some research to see what other offers are out there that might cater to your desired level of coverage at a more pleasing cost.

This is an especially important consideration to factor in if you enjoy going on road trips due to the fact that you’re going to be putting a lot of wear and tear on your car, as well as lots of mileage. So you want to make sure you choose a policy that will cover any potential damages that could come your way on the road as a frequent traveler.

We only discussed the most common fluctuating factors that can occur in a person’s life, thus affecting the cost of their car insurance. There are many other mitigating factors such as non-driving convictions, change of employment, medical conditions, and the cancellation of other policies, that can have a profound impact on your car insurance. So it is important to take time to reevaluate your car insurance and make sure that you are getting what you need from your policy and at a cost that is fair to you.