Can I Score a Better Deal on My Auto Insurance?
I have to admit, I’m a bit out of my league when it comes to auto insurance. My parents set me up with my first car and insurance policy when I was 16, and now that I’m 35, I’ve never really changed anything or shopped around. I’ve simply taken over the payments and updated the info whenever I got a new vehicle. I currently reside in Missouri.
Here’s a breakdown of my current policy:
2019 Ford Fusion SE
– 6-month premium: $1,224.87
– Bodily Injury Liability: $100,000 per person / $300,000 per accident
– Property Damage: $100,000 per accident
– Medical Payments: $5,000
– Death Benefit: $5,000
– Collision Deductible: $500
– Comprehensive Deductible: $500
– Emergency Road Service: Yes
– Vehicle & Rental Trip Interruption: Yes
– Uninsured/Underinsured Motorists: $100,000 per person / $300,000 per accident
I’ve owned this car since 2019 and have had no accidents or claims, though I’ve had a couple of speeding tickets that are over three years old—unsure if that matters.
I recently reached out to another insurance company, and they quoted me $806 for 6 months, but with lower coverage limits of $75,000.
So, my question is: Is my current policy reasonable, or is it a bit pricey? Are there any coverages I might not need that could help lower my premium? Should I continue shopping around for better options?
It sounds like you’re ready to reassess your auto insurance policy, and that’s a great step! Here are some considerations and suggestions that may help you determine if you can get a better deal:
Compare Quotes: It’s a good idea to shop around for insurance quotes regularly, especially since you’ve had the same policy for a long time. Different companies weigh factors like driving history, vehicle type, and coverage amounts differently, so you might find better deals elsewhere. Since you’ve already received a quote for $806, that’s a promising start!
Coverage Limits: While your current limits ($100k/$300k for bodily injury liability) are typical, you could consider whether you truly need those higher limits. Depending on your assets and risk tolerance, you might choose to lower them to save money, but be cautious, as this could impact your financial protection in case of an accident.
Medical Payments and Death Benefit: Evaluate whether you need both Medical Payments ($5k) and Death Benefit ($5k). Check if you have health insurance that covers medical expenses resulting from an auto accident. If so, you might choose to drop or reduce one of these coverages.
Deductibles: Increasing your collision and comprehensive deductibles from $500 to $1,000, for example, might reduce your premium. Just be sure to weigh the potential savings against the possible out-of-pocket cost if you need to file a claim.
Discounts: Don’t forget to ask about available discounts. These could be for safe driving, bundling with other insurance (like home insurance), or even loyalty discounts if you’ve been with the same company for a long time.
Review Your Needs: Think about how much you actually drive and your general risk. If you drive less frequently or your vehicle is not used for high-risk activities, you might be able to lower your coverage.
Driving Record: Your past speeding tickets may still be considered by some insurers, but since they are over three years old, they may not have a significant impact. Keep this in mind while comparing new quotes.
State Specifics: In Missouri, laws can affect insurance rates, so understanding state requirements and average premiums can be helpful. Checking websites that compare auto insurance costs in your area might reveal if your current rate is above average.
In conclusion, it’s definitely worth continuing to shop around and consider various coverage options. You might find a policy that meets your needs at a lower cost. Remember, don’t just go for the cheapest option; make sure the coverage adequately protects you!