Hey buddy hope you having a good day as always my name is Alex. And thank you for joining me today. I`m very excited to talk about a subject that I`ve been meaning to make article on pretty very long time. And that is car insurance and saving money and everything that you need to know about the subject.
It`s really just not my area of expertise. Right. I worked at a credit union and I love helping people refinance car loans and help them learn about credit scores and all that and save money on interest but insurance wasn`t really my department, right.
Someone reached out to me Alex and he said, you know what you`ve got a lot of good content on your website. Why not talk about insurance stuff? So that`s what we`re doing today.
Turn to the questions that I had asked, cause I really just wanted to know for my own information and I`m also going to share a few things that you can do to save some money on your car insurance.
Question number one: Do you need to wait for your current policy to expire before you can switch over to a new insurance provider? Do I have to wait to do this?
And the answer is no, right? It doesn`t matter if you just signed on for a renewal. Maybe 2 months ago and you got 10 more months ago you can switch on every want and that was good news for me because I had to switch my condo. Policy right. You know I live in it for about 2,5 years but now that I rented out. I don`t need the same level of coverage and protection is if I lived in it. So I was able to switch that policy over save a couple $100 an I thought I was gonna have to wait for my current policy expire. So it`s very, very nice and convenient.
Isn`t it better stay for a long time and get discounts?
Isn`t it always better just to stay with your insurance company for a long time? So you can get their discounts and apparently that`s not true. Right. In fact, it`s kind of the opposite, right apparently insurance companies if you`re someone that`s been there for let`s say.
For someone that`s been there for let`s say 20-25 years right. They kind of look at that policy and say like, well, they`re not going anywhere. So even by steadily increasing premiums every single year. They`re not going to go anywhere and that`s just easy money, right? So it doesn`t always kind of workout in your favor to stay with the same place for a long time brand loyalty and car insurance don`t necessarily go together. Not always at least. I`m another way of looking at this is this way, right? If you`re in.
There are definitely some places that do reward long term clients.
If you`re in an insurance company and you want new business will you maybe giving discounts to new people and not those that have been there, you know again, 2530 years and you have no real concern that they`re going to leave. So a lot of times insurance companies are going to give those discounts.
Discounts to new clients and you`re going to be benefiting from shopping around and making advantage of your new member, you`re gonna get that new discount. So always make sure that you`re doing the best you can.
Too much put it this way. It`s pretty simple. If you got a car loan you`re going to need full coverage. Not only for your protection, right. The lean holder is going to want to make sure that their asset is fully protected that makes sense whereas or is it your cars paid off. Now you have the choice of weather or not you and go liability or full coverage. And again this is pretty simple to write if you`re cars not worth very much. It`s only worth maybe $2000. You probably want to go with the liability coverage and use that monthly savings to offset any total loss and then could experience in the future and on the other hand, if your car is paid off but it`s still worth $15000-$20000. Scan to make sure you`re not overpaying for your policy premium.