Budgeting, 2nd jobs, selling what you aren’t using- All great ways to save money but Bruce’s number one tip to save money is to shop car  insurance rates.  Most people don’t have a relationship with their agent and even more don’t understand what they are paying for.

Shop Car Insurance Rates

Insurance is an intangible object unable to be touched or grasped, it does not have physical presence.  Many see paying for an intangible object as a hassle or annoyance.  Especially when you are not sure you will ever get into an accident, you may not ever actually USE your insurance.  When making a purchase online or in a store your brain releases dopamine in anticipation of the pleasure your purchase will bring or the excitement of the great sale price you received.  This can become an addictive behavior for many, even more so with online shopping and receiving your purchases by mail.  Unfortunately, buying insurance does not create an excitement or happy feeling so the need to ‘shop’ around for the best price isn’t as desirable.  

Uninsured drivers

Car insurance is required in each state and each state has their own insurance requirements.  The consequences for not having insurance also vary from state to state.  In Missouri:

If your driving privilege and/or license plates are suspended for not having insurance, the following suspension periods will apply:

• 1st suspension = 0 days
• 2nd suspension in two years = 90 days
• 3rd and subsequent suspension = 1 year ¹

For drivers who don’t have the money to pay for insurance or don’t see the benefit often purchase a policy then cancel it once they receive the documents.  They will be able to use the documents to get their vehicle licensed but the DMV has no way of knowing if the policy remains active or not.  For this situation if you get into an accident with this driver they will not have insurance to cover any injury’s or damages to you.  Uninsured motorist coverage is part of your plan to cover yourself if you are involved in an incident with this driver.  Essentially, one reason your premiums may go up is to cover the % of people who drive without insurance.

How to Save Money on Car Insurance

With many of our prospects we hear they have been with the same company for blank years so they should have a low insurance rate.  That isn’t always the case and it’s in the companies best interest for you to believe that.  There are 2,538 insurance companies in the US.²  No one could possibly have time to check rates with all of them.  An Independent Agent has relationships with several different companies and they can quickly check the rates with all of them for your specific needs.  An Independent agent can check rates each year on your behalf to get the best coverage’s at the most affordable rates thru the companies they work with.   They will shop your insurance rates for you saving you time and money.  Independent agents don’t have the advertising budget that the national companies have and that is one reason you may not be aware of them.  Click here to shop car insurance rates with an Independent Agent.

Bruce’s Advice

Shop your car insurance rates once a year especially if you have had incidents or purchase a new vehicle.  Get to know your agent and have them explain all of your coverage’s.  If it still seems confusing ask them to use real life examples.  If you are unhappy with a rate increase discuss increasing your deductibles or only insuring an older car for liability coverage.  Give my office a call at 417-882-1800 and one of our agents will be happy to review your current policy and see how we can help you.

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Sources:

1-  Sections 303.042 through 303.044, RSMo.

2- https://www.iii.org/fact-statistic/facts-statistics-industry-overview

http://www.bbc.com/capital/story/20161123-shopping-a-sale-gives-you-the-same-feeling-as-getting-high

The information contained in this material is believed to be reliable, but accuracy and completeness cannot be guaranteed; it is not intended to be used as the sole basis for financial decisions.   

We are not permitted to offer, and no statement contained herein shall constitute, tax or legal advice.  Individuals are encouraged to consult with a qualified professional before making any decisions about their personal situation.  Our firm is not affiliated with the U. S. government or any governmental agency.  Investment advisory services offered only by duly registered individuals through AE Wealth Management, LLC (AEWM).  AEWM and The Resource Center are not affiliated companies.  AW05182995