Can I Find a Better Deal on My Auto Insurance?
I’ll admit that I’m not too knowledgeable about auto insurance. My parents got me my first car and insurance when I was 16, and now I’m 35. I’ve pretty much just taken over paying the bill and updating the policy when I get a new vehicle without ever shopping around. I currently live in Missouri.
Here are my current policy details:
- Vehicle: 2019 Ford Fusion SE
- Cost: $1,224.87 for 6 months
- Coverage:
- Bodily Injury Liability: $100,000 per person / $300,000 per occurrence
- Property Damage: $100,000 per occurrence
- Medical Payments: $5,000
- Death Benefit: $5,000
- Collision: $500 deductible
- Comprehensive: $500 deductible
- Emergency Road Service: Yes
- Vehicle and Rental Trip Interruption: Yes
- Uninsured/Underinsured Motorists: $100,000 per person / $300,000 per occurrence
I’ve had my car since 2019 with no accidents or claims, although I do have a couple of speeding tickets from over three years ago. I recently received an offer from another insurance company for $806 for six months, but it only includes $75,000 in coverage limits.
My questions are: Is my current rate reasonable, or is it on the higher side? Are there any aspects of my policy that I might not need which could help lower my premium? Should I continue to shop around for better options?
It sounds like you’re ready to take a closer look at your auto insurance policy, and that’s great! Since you’ve been with the same policy for a long time, it’s definitely worth the time and effort to shop around and potentially save some money. Here’s a breakdown of what to consider:
Comparing Policies: The quote you received for $806 with lower coverage limits ($75k) is significantly less than your current policy. Before switching, consider whether you’re comfortable with those lower limits of liability coverage. If you’re in an accident and found liable, those limits can be important in covering medical bills and damages.
Coverage Limits: Your current limits for bodily injury liability ($100k/$300k) and uninsured motorist coverage are generally considered reasonable, but you may be able to find similar options at a lower price. Consider the risks in your area and how much liability coverage you feel comfortable with based on your financial situation.
Medical Payments and Death Benefit: Depending on your personal health insurance and financial situation, you might evaluate if you need both medical payments ($5k) and a death benefit ($5k). In some cases, these can be reduced or removed to lower the premium.
Deductibles: Your $500 deductible for collision and comprehensive coverage is pretty standard. However, if you’re comfortable with taking on a higher deductible, you could lower your premium. Just make sure you have enough saved to cover the deductible in case of an accident.
Additional Coverage: Emergency Road Service and rental trip interruption are great features, but consider if you really need them. Some people prefer to handle these scenarios through a credit card benefit or other means.
Discounts and Bundling: Check with your current insurer to see if you qualify for any discounts, such as safe driver or multi-policy discounts. If you have other types of insurance (home, life, etc.), consider bundling them for a discount.
Shopping Around: It sounds like you’re already on the right track! It’s a good idea to get at least 2-3 quotes from different insurers to see a wider range of options. Make sure you’re comparing similar coverage levels as you shop around.
Consult an Agent: Sometimes, speaking with an insurance agent can help clarify what you need. They can offer advice tailored to your specific needs and help you understand the benefits of different policy features.
Overall, it looks like you have a solid understanding of your current policy, and shopping around can likely yield better rates or options that suit your needs. Always take the time to read the fine print and understand what you’re getting with each quote before making a decision.