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Between buying gifts and traveling to meet friends and family, the holidays are a notoriously expensive time of the year. Some people plan and save in the months before Thanksgiving and Christmas, and then there’s the rest of us.
If you don’t have a nice bit of cash to cover the cost of gifts and airline tickets, then you’re probably thinking of ways to save money this season. Cancel your gym membership? Stop going out to eat? Change car insurance?
If you are seriously considering this last option, it isn’t necessarily a bad idea. That said, you should definitely do your research and weigh the pros and cons before making such a significant change.
Below, Cate Deventer, insurance writer and editor at Bankrate.com, shares her top auto insurance tips, including how to save money and free up cash when you are in need.
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Tips on car insurance
Request multiple offers.
Whether it’s your first time car insurance or you want to switch providers, Deventer says it is extremely important to get multiple quotes and compare them. It recommends obtaining at least three offers before making a decision. “Every company has different coverage offers, different discounts and a different rating system,” explains Deventer. “No two companies are alike, so it is very helpful to be able to compare.”
Another reason multiple quotes are important? It can help you establish a starting point for the expected payments. Deventer says that while prices vary, there are numerous offerings that can help you determine whether one is particularly higher or lower than the other.
Last but not least, Deventer encourages insurance seekers to review a company’s claims satisfaction rating. Most older, more established companies will have them, but some newer app-based options may not.
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Make sure your quotes are correct.
When new insurers request a quote, it goes without saying that they are only really helpful if they are correct. That means that you should exercise your due diligence when reviewing.
First, make sure that the new offers also include the types and limits of coverage that you have with your current insurance. “Otherwise you could compare a moderate policy with higher liability to a minimum insurance policy. The cheaper company may not actually be lower; You buy less insurance, ”explains Deventer.
Also, make sure the listing includes all of the vehicles and drivers that you have requested. Sometimes offers are made for just one driver and one car when you really need several drivers and several insured cars.
Finally, Deventer says that you should ask the companies you are comparing whether they have checked all of the driving reports. The first is the CLUE report, which includes all of the insurance claims you have submitted, and the second is your Motor Vehicle Record (MVR), which pulls in your driver’s license status and tickets. If you have a pending ticket that you did not report when you requested the original offer, it can definitely affect the offer price.
Are you considering a move? Check out the top offers on Bankrate
Reduce consents before switching insurance provider
Well, when it comes to saving money on your auto insurance, it definitely doesn’t hurt to see what other options are there. However, Deventer cautions against using this as a budget tactic. “Changing your car insurance really isn’t the best way to free up space in your budget,” she says.
If you want to save money, consider removing endorsements or extras from your policy that you are not using instead. “For example, if you drive less or don’t drive to and from work every day, you may not need roadside assistance,” says Deventer. Other recommendations to consider are rental car insurance, gap insurance, new car replacement, and accident forgiveness.
There is no denying that the money shortage during the Christmas season is real. Should you ultimately decide to change the insurer, Deventer warns against making the change yourself online. Instead, she says it is best to do this with an agent who “understands your life experiences and needs, and can warn you about changing something that you really shouldn’t be changing”.
Calculate your savings on car insurance with Bankrate
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