So long as you pay your insurance from month to month, you can always change carriers or take out a new policy with the same carrier. This means you always have the potential to get a better plan in which you pay less for insurance. 

If you want to negotiate with your current carrier to get better rates, it can be a tricky business. Fortunately, we’ve got the secrets you need to start saving money every month! 

Insurance Rates vs. Premiums 

First, we need to address the elephant in the room, which is the difference between negotiating your insurance rates and negotiating your premium. 

Your insurance rates are determined by the state you live in. Strictly speaking, you can’t negotiate those rates down because the insurance carrier has no right to arbitrarily lower them. In fact, they could get into quite a bit of trouble offering significantly different rates to different customers. 

However, you can negotiate your premium, which is the monthly amount that you pay. With our tips below, you may be able to pay less for your premium than ever before. 

1. Lower Insurance Bill by Removing Unnecessary Coverage 

One of the easier ways to negotiate a better monthly premium is to remove unnecessary coverage. This is especially true when it comes to older vehicles. 

Left to their own devices, insurance carriers will often try to sell you as many insurance products as possible. In addition to the mandatory liability insurance most states require, carriers will try to sell collision insurance (to further protect your vehicle even if you are at fault while driving) and comprehensive insurance (to further protect your vehicle even when you aren’t behind the wheel). 

All of this insurance (collectively known as full coverage insurance) can help protect your vehicle and even replace it in the event of catastrophic damage. If your car is at least 10 years old, though, you could probably get by with only liability insurance. You don’t want your annual car insurance premium to cost more than your car is worth. And, if you get into a major accident, you are likely to buy a new vehicle anyway. 

2. Raise Your Auto Insurance Deductible for a Smaller Premium 

Most drivers want a lower deductible when purchasing insurance. Their logic is simple: In the event of an accident, they want to pay as little out of pocket as they can before their insurance takes care of the rest. 

However, low deductibles lead to higher insurance premiums. If you are a safe driver who rarely (if ever) gets into accidents, you may not need the low deductible. 

Raising your deductible can lower your monthly premium, and sometimes by a good bit. Just don’t forget to save some money so that you can pay for repairs in the event of an accident! 

3. Bundle Your Policies to Get a Multi-Policy Insurance Discount 

Do you have multiple insurance policies through the same carrier? For example, do you get homeowner’s insurance through the same company as your car insurance? In that case, one of the easiest ways to save money is by bundling your policies together. 

Most of the time, your insurance carrier is willing to give you a discount for having multiple policies with them. They see this discount as a small cost to pay for keeping you as a customer, and customers getting discounts are likelier to stick around. 

In terms of saving on your premium, a bundle is one of your best options. That’s because you’ll still be getting the coverage you had before, but now it won’t cost as much as it once did. 

4. Ask About Car Insurance Discounts 

Saving money on your car insurance premium can be as simple as asking. So if you haven’t done so already, you need to talk with your carrier about potential car insurance discounts. 

Carriers offer discounts for a wide variety of things. There are discounts for safe driving and discounts for limited driving. There are also discounts for completing driving safety courses, installing anti-theft devices, and so much more. 

It may take a little time or effort to qualify for some discounts (such as installing anti-theft devices). In some cases, you may already qualify for a discount and not know it. And once the discount is live, you will save money on your premium each month. 

5. Repair and Boost Your Credit Score to Pay Less in Insurance Costs 

Insurance carriers look at a variety of different factors when setting your insurance premium. Some of them are things you can’t easily control, including your age and where you live. Some states are allowed to use your credit score to determine insurance costs, and that is something you can control. 

The best way to take control of your credit is to sign up for a credit monitoring service. Such a service helps you stay on top of changes to your credit and review the different factors dragging your score down. If you encounter any inaccuracies on your credit report, you may be able to dispute them for an instant bump on your score. 

Once you have a lower score, you’ll be in a better position to negotiate a lower car insurance premium. As an added bonus, you’ll likely get better rates for things like car loans and even home loans once your credit is improved. 

Get the Best Car Insurance Premium Today! 

All of our tips above can be helpful in negotiating a better insurance premium through your carrier. However, if you really want to save money, it’s important to discover what other car insurance companies have to offer. By comparing rates every so often, you may find better coverage at a more affordable price. 

And that’s something we specialize in here at InsureOne. We are always ready for you to get a quote online. Alternatively, you can pick up the phone and give us a quick call at 800-836-2240. Finally, feel free to come into one of our convenient nearby offices! 

That’s where we come in. We’ve put together a comprehensive guide to help you read and understand your auto insurance policy. It will help you navigate your existing policy and determine if you need a different policy.

Ready to finally understand your car insurance policy? Keep reading to discover the answers you need!

Your Declarations Page

One of the first pages of your policy is the declarations page. This is where you can find several key details about your policy.

Some of the important information includes who the named insured person is on the policy and your contact info and a description of the insured vehicle(s). In this section, you can also review what your policy period is, what your liability limits are, and what your premium and ratings are.

If some of these terms are confusing, don’t worry: Our guide will break down everything you need to know!

Review the Policy Form

After the declaration is your policy form, it is best to review the policy form for accuracy and to answer lingering questions you may still have.

What does the policy form actually tell you? The best way to think of this section is that it is the form that defines your coverage. Along with that, you get important information about coverage exclusions, insurance riders, special endorsements, and other important information.

In some cases, sections about your policies and endorsements may have their own separate sections. In that case, the declarations page should help you navigate the different sections, and a good insurance agent can answer questions you may have after you review your policy form.

Special Terms to Understand on Your Auto Insurance Policy

What is it that makes an automobile insurance policy so hard to read? In most cases, it comes down to the different terms involved. In this section, we’re going to explain the meaning behind some of the most common terms in your policy.

Named insured

As the name implies, this defines who is insured by this policy. It is possible to add multiple people to your policy, and the first name listed will always be the primary named insured person.

Additional insured

If you have a current loan for a vehicle, then the lender is likely listed as a loss payee and may even appear as “additional insured.” And before you buy a car, many dealers will want to review the declarations page of your policy to make sure you have the minimum required insurance coverage for your state. For example, Alabama will have different minimum requirements than other states.

Drivers on the policy

This is a pretty straightforward term. As the name implies, this term defines all of the drivers who will also be insured by your policy.

Vehicles covered

This term tells us exactly which automobiles are covered by your policy. In addition to the make and model of your automobiles, this section will also contain the vehicle identification number (VIN) of all relevant vehicles.

Policy period

This one is easy to understand but crucial for you to memorize. This tells you exactly when your auto insurance policy started. More importantly, this section also tells you exactly when your policy will be over.

Coverage

It contains some of the most critical information in your entire policy. This section gives the cash amount of your coverage and discusses what is actually covered by your policy. You can also find out about your premium in this section, though the priority for most drivers is verifying what is and is not covered by the policy.

Limits

This is an important section, and our guide will soon take a closer look at what these limits mean for you and your insurance policy. In short, this section defines the maximum amount that insurance will pay out in the event of bodily injury and property damage payouts.

Deductibles

This term lets you exactly how much you will need to pay before any of your insurance kicks in. It’s important to know this information before you are stuck with a surprisingly high bill after an accident!

Premiums

This one is pretty straightforward, as it tells you how much you will pay for your insurance.

Applied discounts

This term lets you know about any discounts that are effectively lowering your insurance costs. It’s always good to speak with your insurance agent to discover any additional deals you can take advantage of.

Know the Limits of Your Auto Insurance Policy

Earlier, we reviewed the importance of the “limits” section in your insurance policy. But this section may mean very little to you unless you know how to read it.

For example, you may see a confusing arrangement of numbers in this section with slashes between them. A typical amount may look like this: “30/60/25.”

What do these numbers mean? Respectively, these numbers refer to the limits of coverage for your bodily injury limit payout per person ($30,000 in this case), bodily injury limit payout per accident ($60,000 in this case), and the limit payout on property damage ($25,000 in this case).

Your state is going to offer minimums that define the minimum level of insurance coverage that is required. Beyond that, you can determine how much more coverage you want, though the limits of your coverage (along with other factors like your deductible amount) may drive the cost of your monthly insurance premium up.

Related Documents

As you can tell, much of the important information in your auto insurance policy is contained in the text of that policy. But your policy will also include some important documents you need to keep track of.

In addition to the policy form itself, you should have an insurance ID card. This includes details about your policy and your vehicle, making it easy for you to present this info in the event of an accident.

There will also be a verification of insurance page. This typically offers a one-page summary of things like who the named insured persons are, coverage limits, and other key info.

Perhaps the most important related document is your insurance agreement. This is your actual contract with the insurance carrier, though you will need to review other sections of the policy to understand everything on the agreement.

There will likely be a conditions page that specifies when you are required to file a claim and other steps that may be required (such as contacting the police if your vehicle was burglarized or vandalized). Beyond these conditions, it is up to you to determine when you file a claim, and some drivers are careful about filing because this typically drives the premium up.

What Are Exclusions?

Your insurance policy will also lay out what your insurance exclusions are. It is important to review this section because it will explain the exact circumstances in which your vehicle is not covered by insurance.

One typical (and obvious) exclusion is that insurance won’t pay out if you intentionally damage your vehicle or use your car to intentionally damage others. Additionally, your vehicle is typically not insured if you are using it for business purposes (such as a freelance delivery gig or delivering passengers as part of a rideshare program).

While you’re not likely to be driving Fast and the Furious style, exclusions typically specify that damage will not be covered if a car was used for street racing. And some exclusions verify that the carrier won’t pay out if your vehicle has been damaged by circumstances ranging from the outbreak of war to nuclear radiation exposure!

As you can tell, some of these exclusion events are likelier to happen than others. But make sure you understand everything so you know when damage to your car is effectively not covered by insurance.

Going Above the Minimum

Previously, we reviewed the concept of minimum insurance coverage. Your state will set the absolute minimum amount of insurance you must have as a driver. And if you’re trying to save a few bucks, you might be asking a question: Why would you ever go above the minimum level of coverage?

It’s almost always better to get more than the minimum amount of coverage because the insurance payout will help pay for damage to vehicles involved and even medical care for injured people. If you have minimum coverage and a newer vehicle, you may have to spend thousands of dollars out of pocket to replace your totaled car.

Plus, you never know how much medical care money you might really need. If you are at fault and another driver is hurt, a minimum amount of coverage may not be enough to take care of their medical bills. At that point, you may be on the hook for quite a bit of money!

Long story short? Buy as much insurance as you can reasonably afford and start driving with true peace of mind.

Finding Out More

Now you know how to read and understand your insurance policy. But do you know where to get the coverage you need when you need it the most? InsureOne is here to help! Start your free car insurance quote online, over the phone, or at one of our offices near you.