According to a recent AAA Consumer Pulse survey, more than one-quarter (29%) of Georgians have not reviewed their auto insurance policy with an agent in the past year. Drivers should review their policies at least once a year to ensure they are getting the best rate and proper coverage. Most drivers in Georgia have auto insurance, and the majority (61%) cite cost as the number one factor when selecting their insurance policy. Auto insurance policies can vary by hundreds, even thousands of dollars, depending on the type of car you drive, the type of coverage you have and from which company you purchase your policy.
"Many drivers, even those who have not had a recent crash or have points on their license, have seen their auto insurance rates rise this year," said Gene Calkins, Vice-President of Insurance, AAA - The Auto Club Group. "One reason some may notice rising rates, people are driving more due to cheaper gas. 2015 was a record year for auto travel and 2016 is on pace to outperform last year. More people on the roads equals more vehicle crashes. Review your policy with an independent insurance agent every time you renew your policy, to ensure you a getting the best rate."
Many insurance companies have developed programs that monitor their customers' driving habits, which consumers have the option of participating in. More than one-third (37%) of Georgians have a positive opinion of usage based insurance which rewards good driving habits with a discount upon renewal. Hard braking, speed, time of day, and miles driven are factors most companies use to grade drivers who opt-in to usage based insurance. One example of usage based insurance is AAADrive™. AAADrive is a mobile tool in the AAA Mobile App that could help you save money and become a better driver. AAADrive™ monitors your driving habits and gives you a score based on your performance. The better you drive, the higher your score.
"Usage based insurance offers a unique way for 'good' drivers to receive discounts they might not otherwise receive," said Garrett Townsend, Georgia Public Affairs Director, AAA - The Auto Club. "Drivers who use programs like AAADrive can receive up to 30 percent off their auto insurance premiums."
Money Saving Tips
1. Pay in full. This option may not be feasible for some, but may offer a substantial savings for a six or twelve month policy. Most insurance companies charge installment fees when you choose to pay monthly. Drivers who pay their premiums in full avoid installment fees and the possibility of late fees.
2. Maintain good credit. Many insurance companies use a credit-based insurance score to price a policy for a driver. Research shows that higher insurance scores are correlated with lower claim activity. Paying your bills on time and keeping your credit card debt low will help raise your credit standing. Also, check your credit record on a regular basis to ensure there are no discrepancies that could negatively affect your credit. Have any errors corrected promptly.
3. Shop around. The price of a policy can vary from company to company. Research several different companies and compare quotes to get the best deal, but don’t use price as the only factor when deciding on the right policy. Nearly half of drivers (45%) would say poor customer service would cause them to shop for a new insurance company. Ask family and friends for their recommendations. Also, consider a company’s reputation and pick an agent that will cater to your needs.
4. Bundle. Many insurance companies offer a discount to customers who purchase multiple types of policies, such as home and auto. In some cases you can save money by having multiple cars on the same policy.
5. Review your policy. More than one-quarter (29%) of Georgians have not reviewed their auto insurance policy in over a year. It’s a good idea to meet with your insurance agent every time you renew your policy to ensure you are getting the coverage and rate that is best for you. You may even be eligible for discounts you were unaware of.