Fifteen minutes could save you 15 percent or more on car Insurance. Really! It’s not just true because a gecko says it.

Shopping around for car insurance every six months to a year could save you hundreds of dollars on your rates. Without even switching companies, you could save money by having your current insurance company reassess your existing rates. However, switching insurers could be in your best interest.

Comparing liability insurance, checking for unneeded coverage, and assessing your vehicle’s value could result in incredible savings for you. Here are some tips to save you cash by showing you how to find the cheapest rates and the best ways to search for discounts.

Rates are Always Changing

Auto insurance companies make the millions of dollars that they do by feeding off of consumer neglect. The average person will let their car insurance rate sit because it’s a monthly bill that everyone has. Yet rates of all kinds are constantly changing.

From world events to differing tax laws, rates fluctuate rapidly. For the most part, insurance policy prices change without you doing anything. Just like every company, auto insurers have expenses like employee compensation and marketing budgets.

As these costs vary, so does your rate. Right now, you could be saving hundreds of dollars a year for the same coverage you already have.

One thing people tend to forget is that insurance companies are more than willing to renegotiate. Let’s face it — most are making millions if not billions of dollars, so giving you a break of a few hundred dollars a year isn’t killing them.

Something as simple as moving down the street could affect your rates. Differing zip codes have higher or lower rates of traffic accidents. If you move to a safer zip code, call your carrier and watch the discounts roll in.

If you’ve recently gotten married, you’ll receive a massive discount on your current policy, but could find an even cheaper rate by shopping around. Since rates are ever-changing, if you’re planning for the future, keep insurance in mind. The extra money could come in handy for you and your family.

Accidents & Tickets Could be Off Your Record

When you fill out your initial application to receive coverage from an insurance company, a background check will be completed to ensure you’re a reliable driver. If you have any previous accidents or tickets, these stay on your record for four to six years.

Generally speaking, if you have an accident history, your rates will be far higher than those labeled “safe drivers.” Something as simple as a parking ticket or as harmful as a DUI can result in nearly $1,000 a year in increased policy rates.

As time goes on, these violations will be removed from your record, and your rates will drop substantially. This is the best way to save a ton of money on your rates. Drive safely, keep your eyes on the road, and you’ll see a considerable drop in auto insurance expenses.

You Could Have Unnecessary Coverage

One of the most common mistakes that people make is not checking in on the coverage they are already paying for. While car insurance is a necessary purchase that can save you thousands of dollars if you were to get in an accident, too many people overpay for coverage that they will never use.

In all states except New Hampshire, you’re required to carry minimum liability insurance. Additionally, most policies also include collision insurance. Uninsured motorist, medical payments, and personal injury protection are recommended in most cases, but calling your provider to find out specific recommendations could result in savings.

However, if rental car insurance is added to your premium, but you use a rental once every five years, you probably don’t need to continue that coverage.

Re-evaluating the extent of your collision coverage is one of the best ways to check if you are over-covered. According to the Insurance Information Institute (III), the average cost of collision car insurance coverage is around $290 per year. Vehicles do not retain the value they came off the showroom floor with.

As the vehicle’s value depreciates, the need for extra collision insurance is useless.

Living on a budget is a tough thing to do. If you can reduce costs on essentials like auto insurance coverage, you could add thousands to your wallet each year.

New Customers Often Find Better Deals

Sticking with your current insurer can offer you many discounts and save you money in the long run. But a sure-fire way to save money is by becoming a new customer. Even more so, becoming a customer with a brand new insurance company will offer you major savings.

As a tactic to get more consumers in the door, insurance companies will offer extremely competitive rates to new customers who switch. Though these rates may increase to average over time, doing comparison shopping every six months can result in continuous savings.

Sometimes offering more savings, new companies trying to establish themselves will provide cheaper rates for a longer time. Auto insurance is a lucrative business, which means many professionals hope to break onto the scene. This translates to a crop of new insurance companies popping up on a yearly basis.

Switching to one of these new companies could result in tremendous savings.

Vehicles Depreciate in Value

The number one determinant of your auto insurance rate is the vehicle you drive. If you own a Ferrari, you will be paying an outrageous amount to keep it covered. If you drive a 2002 Honda Accord, your rates will be minuscule.

As time goes on, however, even the value of a Ferrari will depreciate. If you have neglected to call your insurance company for a decade and have had the same car, you have probably missed out on thousands of dollars.

If you were to get in an accident in a vehicle worth $3,000, why would you need to pay for $10,000 worth of collision coverage? You absolutely do not. Whether you want to contact your current company or switch to a new one, decreasing your vehicle’s value will save you money on your policy.

Compare Insurance Every Six Months

There are more ways than just these to save money and find discounts on your auto insurance policy. But by doing only one check, you’ll save hundreds to thousands of dollars a year. Every six months, you should call your current company and ensure you aren’t missing any savings opportunities.

If you already have the lowest price available through your current provider, consider shopping around for the lowest price and then making the switch.

Ethan Lichtenberg writes and researches for the auto insurance comparison site, AutoInsurance.org. He specializes in insurance and business writing and lives in sunny Tarpon Springs, Florida. 

The post Making the Switch: Why You Should Shop Around for Auto Insurance appeared first on Fine-Tuned Finances.