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Is it possible to save BIG money on car insurance?

  • Auto Insurance
  • Xavier Sabastian
  • 5 minutes

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Social media is flooded with ads that shout out with incredible numbers, loud colors, and unbelievable promises. One such promise is ‘SAVE BIG ON CAR INSURANCE’. You can save on car insurance, but save big? We at Way.com always get inquiries about whether car owners can save as much as 45% on car insurance.¬†

car insurance savings

Sorry to burst your bubble. The answer is an emphatic No! We have decided to take the step of bursting this myth that is always found on the internet and in your inbox. Significant savings on your car insurance are difficult to resist. The truth is, these cost-cutting measures aren’t magical. The majority of car insurance businesses are required by law to file their rates with your state.¬†

While there are some discrepancies, rates do not differ significantly from one provider to the next. So, how can your company help you in saving car insurance premiums?

Lower your limits

Lowering your limits is the quickest and easiest way to save money on your car insurance. If you presently have $100000 in coverage, decreasing it to $50000 might save you up to 50% on your monthly price. Even more, money can be saved by lowering state minimums. This way of lowering your insurance prices is not advised. In the event of an accident, smaller limits mean less coverage. Because motor liability insurance limitations determine the amount paid to the other party in an accident, you may be liable for more than you know.

Your new “budget” insurance company, for example, lowers your limit to state minimums. In California, the state minimums for bodily injury are $15000 per person/$30000 per accident, with just $5000 in property damage.¬†

Assume you’re going to work when you rear-end a mom driving her two children to school. The other vehicle (not to mention your own) has several injuries, and both cars are totaled. With medical expenditures as high as these days, the $30,000 physical injury per accident limit for just the mother and one child will be exceeded.¬†

Her car is valued at around $11,000, but it is no longer roadworthy.¬†You’ve now spent $6,000 more than the state’s minimum property damage limit.

Where did she get the extra $6,000 in property damage and the $15,000 in medical expenditures for her other child? 

That’s right, Sherlock, it is from your pocket.

When you factor in the legal fees associated with a potential lawsuit, you could be looking at a sizable sum of money to pay. When you factor in the cost of a replacement vehicle (because you don’t have full coverage) plus your medical bills, you’re looking at a six-figure accident.¬†

Don’t you now wish you’d kept your $100,000 in coverage rather than opted for the lower monthly payment?

Lowering full coverage

There may be pressure to reduce complete coverage whether you buy online or over the phone, especially if you have an older vehicle. 

Removing full coverage from an older vehicle has some merit, especially if the vehicle’s worth is less than the deductible.

On the other hand, full coverage may cover items like pet injury/damage, interior vehicle damage (other than collision), rental car coverage, and even windshield repair. These are things to think about before canceling your insurance.

Incrementing your Deductibles

Adding or increasing deductibles is another option to reduce auto insurance prices. A deductible may be added to your liability insurance, or your comprehensive and collision deductibles may be raised. Higher deductibles may lower rates, but they may also increase your out-of-pocket payments in the event of an accident. How much should you set aside as a deductible? 

Determine how much you could quickly pay for the damage in the event of an accident as a rule of thumb. You should choose a smaller deductible if you have a $1,000 deductible but cannot afford to pay $1,000 if you are in an accident.

Low-rated businesses

Many low-cost vehicle insurance providers use one or more of the strategies listed above to minimize your monthly premiums. Furthermore, they may be using a carrier with a poor credit rating.

For your information, A.M. Best is a company that rates insurance firms based on their financial viability. An insurance firm with an A- or better rating is typically the most financially solid. Companies with a rating of B or lower are less financially solid and may be unable to meet their financial responsibilities in the event of an accident.

How should you proceed?

Do your study if you’re thinking of buying insurance from one of these internet “agencies.” Ask who the issuing insurance company is, then search them up to see (1) whether they are financially solid and (2) if they are licensed to do business in your state.

Then compare, rather than taking their monthly premium quote at face value. Please find out how much coverage with their company will cost you based on your current insurance limitations and deductibles. You might discover that you aren’t saving as much as you believe.

car insurance savings

Contact Way.com for the best coverage options and deductibles. We at Way.com have partnered with various car insurance companies and can help you locate the most fantastic coverage at the most incredible price.

GET YOUR FREE PERSONALIZED CAR INSURANCE QUOTE IN MINUTES!

 

Check out our blogs for info on finding top-rated airport parking, the best parking spots in your city, and affordable car washes near you. 

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