Paying too much for car insurance?

Last Updated on January 20, 2024 by Work In My Pajamas

So, you are working from home and need to cut some expenses, whether it’s because you took a pay cut or things have just gotten out of hand lately. Most people never take time to consider whether or not they might be paying too much for their car insurance. The majority of people pay the bill soon after it arrives without taking a second glance, but with the slow economy impacting all of us, it’s time to look at every expense, including your car insurance fees.

Check your policy

Every bill that enters your home needs to be considered as a business expense if you are working at home, and as a business expense, it should be reviewed regularly. This especially includes your car insurance. Has your policy been sitting in a lock box or a drawer? Examine it closely annually to see what your rates are and what is covered.

Any number of life events can lower your rates. If you have started working at home since your last payment, or have never let your agent know about your home office then you are paying too much. Call the insurance company right away and discuss the changes in your life that could change your rate; you might even be able to get a credit back to when your policy should have changed, if you ask for it.

Check other companies

It takes a little time to find a first-rate and reasonably-priced policy. Read online reviews about insurance companies you are considering in your area. Make note of any companies with special rates for individuals who work from home. Ask friends for referrals, especially those who also work from home.

Smaller local companies often have excellent, affordable fees because they are eager to compete with the larger companies. Narrow the list and get quotes from companies that best fit your needs. If you feel loyalty towards your current provider, you can ask them to match the price quote you’re given from another company.

Take advantage of discounts

Many home entrepreneurs are not aware that they are eligible for discounts. They are not ticking up miles on the odometer by traveling to the workplace and have reduced out of town commuting miles by working at home. Because you use your car less, you can receive a lower rate than you had in the past. There could be several other possibilities out there, so you need to look into opportunities for discounts and then speak up. If your company or agent doesn’t provide the incentive, others will.

Protect your good credit rating

If you are at an at-home business owner and have a good credit rating you are doubly deserving of a lower rate for car insurance. Don’t be shy about letting your agent know that your credit rating is good. Once you get the lower rates, protect that rating with care.

Other little ways to save

Take into consideration your driving record. If your insurance increased earlier because of a ticket or accident and it has been a few years since the occurrence, your insurance should go back down. If you haven’t had any problems in a long time or ever, you should qualify for a good-driver discount. Also, consider raising your deductible to lower monthly payments. If you’re a safe driver, this could save you a lot of money in the long run.

Be prepared for emergencies

Do not simply choose a policy that covers the minimum requirements because it’s the cheapest. If your insurance is worthless in case of an accident, all the money you have paid for it has left you standing on your own two feet with large bills, and as a person working at home you can’t afford that kind of error. Look at what your out-of-pocket costs are and only purchase that policy if you will be able to cover it if something bad happens.

Don’t waste money unnecessarily

Have you had the same insurance provider for many years? Has he become a friend? It is very likely that you are paying too much for insurance if you refuse to check your other options because of brand loyalty. Your agent protects his business against expenses that are too high and you should too. You will never be sure unless you take the time to check it out and periodically compare rates.

It’s easy to fall into the trap of paying too much for car insurance. Lots of people do, but it not fiscally wise, so take time to reassess what you are paying and be sure you’re getting the best rate. Every penny counts, especially when you take a pay cut or learning to live on less.

Gina Hamilton is an insurance consultant and content contributor for Kanetix. Check here for an auto insurance quote from Kanetix, from the U.S. to Canada; see insurance in the North Bay area of Toronto.

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