May 13, 2011

4 Signs That You Are Being Overcharged For Car Insurance

If you think you may be overcharged for car insurance there are a few things you can look for from your provider to find out if you are getting the best deal possible. As important as having appropriate coverage is, no one has to pay high car insurance. The following are four signs that you are being high car insurance and that it is time for you to find a new provider.

Your Insurance Has Fees On Top of Your Premium

Some companies try to get you to pay for at least six months of coverage at a time by tacking on a convenience fee for each monthly payment. It may only be something like $10 but over the course of a year that adds $120 to your annual total. If you want to pay monthly installments, you should find an insurer that will not penalize you for doing so. There are plenty of insurance companies that can provide that.

Your Driving Record Improves But Your Rates Do Not

If you have some marks against your driving record, you will obviously have to pay a little more than usual. Most incidents will be removed from your record after three years and if you avoid any new infractions, you should expect to pay less for your insurance. If your provider does not offer you a lower rate after your record has been cleared and they still insist that you pay high car insurance, you should consider dropping them. They are clearly overcharging you and you need to find a company that will appreciate your safe driving.

You Have an Average Driving Record but Pay More than the National Average

The Insurance Information Institute estimates that the average driver pays about $840 a year on auto insurance. While it is true that many factors such as age, marital status, type of car and gender affect what kind of quote insurers will give you, if you are paying well over this, you are probably being overcharged.

One notable exception is drivers with serious violations such as a DUI on their record. This can cause an increase in your premium for up to seven years but is to be expected. The same goes for people who habitually get speeding tickets or other types of moving violations.

You Are Not Offered Any Discounts

Many auto insurance companies will offer surprising discounts for things you may not have thought about. For example you may receive discounts for having a car that is rated as being safer than most others.

The key to avoid being overcharged for car insurance is to be a smart shopper and inspect everything carefully.