6 Ways To Screw Up Your Auto Insurance Rate

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Hello! I'm Dan Lyles with Lyles Insurance. In this video, we're going to go over six common ways you can screw up your auto insurance rate.
 
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I see many drivers making the same mistakes over and over that hurts their insurance rate. Sometimes, they don't even realize it. So this video is going to make you aware of those common errors, and can save you a lot of money over time.
 
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Number one: Letting your auto insurance coverage lapse. This is very big. I see so many drivers do this. You need to carry continuous liability coverage at all times, and at least have six months of active coverage in order to earn a prior coverage discount. So don't allow any
gaps in coverage. They really cost you a lot of money.
 
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Number two: Always paying late on your premiums. Many drivers have a habit of paying their premium just a little bit late after the due date. They know they have a cancellation date. They'll make their payment before it cancels, but yet once you go past that due date, you might get hit with late fees. And also, when your policy renews, auto insurance companies will reevaluate you every expiration/ renewal period. Anybody who pays their premium on time always has a better chance of being offered a lower rate than someone who has a habit of paying late. So keep that in mind and try to always pay on time.
 
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Number three: Picking the wrong payment plan. With most auto insurance companies, you basically have three general options: number one is to pay the whole policy in full, which saves you the most money. But I know for some of you that's an awful big chunk to come up with at once. So if that's not possible, your next best option is to have your payments come out automatically every month. You can do that through a checking account (and some auto insurance companies will allow you to also take it out of a credit or debit card every month as well). But what most people do is just pay month-to-month as they go. And doing so is going to end up costing you more money than the other two options. Companies charge installment fees (some call them finance fees, same thing). But they add up quickly. And so if you can pay for your policy in full or have it come out automatically, it's going to save you some money.
 
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Number four: Filing claims involving very minor damage. I'm not talking about a substantial claim (that's what your auto insurance is for, go ahead and use it). I'm talking about claims that involve very low dollar amounts. Give you a perfect example: I had a customer couple years ago slide on some ice, hit his neighbor's mailbox and fence. Only did about $200 worth of damage. The neighbor said “give me $200 and we'll forget about it”….  He should have jumped on that. But instead, he chose to let the auto insurance company pay the property damage liability claim of $200. And as a result, he now has an at fault accident on his driving record. And that's going to cost him more in the long run than $200 would ever cost. So always keep that in mind. And if you're unsure of what to do, make sure you call your agent first and get some advice before you contact the company directly.
 
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Number five: Not shopping around for a lower rate. Financial advisers recommend that you should shop around at least every two years for a cheaper auto insurance policy. But very few drivers follow that advice. And as an illustration, let's just say you bought insurance three years ago, and Company A was cheaper than Company B, C and D. So you went with Company A. Well, that doesn't necessarily mean that A is going to be cheaper than companies B, C and D
down the road. Things change very quickly in the auto insurance industry. So always make sure you shop around on occasion.
 
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Number six: Not checking on possible discount opportunities. No matter which company you have your auto insurance with, chances are you're not getting every discount that you could be getting. And I'll say this all the time and nobody will listen. But just a simple call to your agent, you'd be amazed how much money you might be able to save. I would guess that nearly
half of all drivers aren't getting all the discounts they should be getting.
 
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So I hope you've learned something from this video that maybe might change your habits and save you some money on your auto insurance rate. For those of you who live in Ohio, Indiana, Michigan, Pennsylvania, Virginia or West Virginia: if you'd like to get a quote, I'll be happy to run a quote for you personally. I provided a link to my website where you can get a quote. I will also put that link under the video, so it will make it easy for you to click on. Or, if you'd like to just get a quote by phone, give me a call. I posted my phone number. Thank you for watching and have a great day!