If you live somewhere where a car is necessary to get around, your auto insurance bill is one of your biggest monthly expenses. In some cases, it may even be more than your car payment. While auto insurance isn't avoidable if you want to follow the law, high auto insurance premiums are avoidable. Here are some of the auto insurance myths that may be keeping you from saving.
You Can Only Change Auto Insurance Companies When Your Policy Expires
You're probably used to contracts that have a fixed end date. If you try to break your lease early or even cancel your cell phone before the contract is up, you're going to face a heavy early termination charge.
Auto insurance policies don't have such a charge. In fact, most states require the auto insurance company to give you a prorated refund if you cancel early so that you only end up paying for the days that they actually insured you.
This allows you to shop around for lower rates at any time of the year and to immediately make a switch if you find a better offer.
Your Rate is Only Affected By You
If you have other driving age people in your home, their records affect your auto insurance rate whether or not they are actually added to your policy. The reason is that your insurance covers any person driving your car, and there's a good chance that someone who lives with you will end up using your car.
If someone else in your home has a bad driving record, you'll want to ask to have them excluded from your policy. This will lower your rate, but it will also mean you won't have any coverage at any time they are driving your car, so make sure they won't be using your car.
Your Auto Insurance Premium Goes Down at 18, 21, and 25
While rental car companies pretty much all use these cutoffs for added rental charges, auto insurance companies don't have such clear lines. They may use a gradual sliding scale so that there isn't a huge jump at a specific age, or they may use different ages.
For this reason, shop around after your birthday to see if there's an auto insurance company with a more favorable rate for your age.
To learn more ways to save on your auto insurance or to get an auto insurance quote, contact a local auto insurance agent like one from Montana First Insurance Inc. today.