find the

Cheapest car insurance 2020 || tips and tricks to saving!

if you haven't switched your car

insurance company within the last five

years I can pretty well guarantee that

you are overpaying for car insurance hey

everyone my name is Ben and this channel

is dedicated to personal finance so if

you're interested in learning how to

earn more spend less and invest the

difference then be sure to subscribe I

have new videos every week have you ever

wondered why companies like Geico and

Allstate or State Farm all of the big

insurance companies always advertise

that you know hey switch to our company

and you can save an average of $500 per

year well how does that work exactly

like how can they all claim that you can

save money by switching to their company

that doesn't make sense like that has to

be some kind of false advertising if

literally any company can save you money

by switching to them right well actually

probably it's true you see in the car

insurance industry there is very little

brand loyalty once they have you as a

customer they're pretty well guaranteed

to keep you as a customer for a very

long time so they don't need to offer

you any substantial discounts in order

to keep your business I mean think about

it when you try to shop around for

insurance like it's not like a quick

click of a button on the internet and

you magically get your price quote it's

a process like it takes probably 15

minutes of filling out 50 or more

different questions how old are you are

you married are you single what's your

driving record what's your credit record

what year do you is your car how many

miles a year do you drive

does it have anti-lock brakes or does it

have a safety you know a car alarm

system insurance companies know that it

is a pain in the butt in order to get a

quote and so most people rarely if ever

actually go and see what their

competitors have to offer so once they

get your business they pretty well know

that they're gonna keep your business

for a very long time and so they can

keep on jacking up your rates

year after year

after year and another reason that

insurance is always so expensive when

you stick with your same company is

let's just say that you went out and you

bought a new car and your car was to say

you paid thirty thousand dollars for

this car so if you wrecked and totaled

your car your insurance company would

have to pay out thirty thousand dollars

to replace that car but now let's

fast-forward five years into the future

and your your payments have gone up each

and every year but your car is no longer

worth thirty thousand dollars

statistically in five years the value of

your car has dropped by about sixty

percent meaning your car is probably

worth roughly twelve thirteen thousand

dollars somewhere in that area so now if

you get in a wreck then we have to

replace a twelve thousand dollar car as

opposed to previously it was a thirty

thousand dollar car so I mean you should

get a pretty massive discount right

because your car just isn't worth as

much anymore but we all know that's true

you don't get a discount as your car

ages and that's another reason why you

should always switch every couple of

years is because when you switch they're

going to recalculate the new value of

your car and that's gonna give you a

lower quote and so that brings up the

obvious question of if you should change

your insurance company every couple of

years

who should you go with as mentioned it

is a pain in the butt to shop around for

quotes and unfortunately there is not

one company that is just universally

cheaper some companies might be really

cheap if you're a brand new driver or if

you have a very pristine record or if

you're an older person or if you're

married you know you all fit into

different categories and different

insurance companies some are gonna be

really good have really good rates if

you fit into this one particular

category and maybe not so good of rates

if you're in other categories so because

of this this is the one time that I

recommend using an outside agency to do

quotes for you I highly recommend going

online and finding a car insurance

broker that you can call up that way you

only have to provide your details once

and this individual works with hundreds

of insurance companies from all over the

nation

many of which you've probably never even

heard of but just cuz you haven't heard

of them doesn't mean that they're not

going to provide great service in fact

some of these smaller companies might be

able to provide you a significantly

cheaper car insurance because they don't

have to spend the millions of dollars a

year on advertising that the big players

do so now that we know that you should

switch what are some common questions

that most people have when it comes to

car insurance and I think the first one

is probably do I have to wait you know

maybe you just signed up with a new six

month program do you need to wait until

that term ends or can you immediately

switch and the good news is unlike cell

phone carriers and stuff like that where

you're locked into a like a one-year

program or something like that

with car insurance you can switch at any

time you know the only thing is once you

do get a new insurance quote from

somebody and you go with that new

company be sure to call up your old

company and cancel it that way you're

not paying double the insurance and if

you've prepaid you know five or six

months in advance with this old company

they will back pay you and they will

send you a refund check for any unused

time so the next question I get a lot is

well my insurance company offers a

discount because I've been with them for

such a long period of time isn't that

worth sticking around with them so I can

continue to get this discount alright

and it's true that some companies do

give a little bit of a discount for

long-term customers but brand loyalty is

very low they pretty well know that

they've got you you know if you've been

a customer with the same insurance

carrier for five ten or twenty years

what do you think the odds are that you

know you're gonna leave this company

once you've been with them for a certain

amount of time they pretty well know

that they've got you for a life and so

while they may offer you a discount you

know typically that discount is really

more of a token discount you know just

to be something to say like hey we

give you a discount when the reality is

it's such a trivial amount that it

doesn't it's not worth it instead car

insurance companies they're always

trying to grow and get new customers and

so if they are gonna give a big discount

they're gonna throw that at new

customers to try to entice them to come

over and use their product as opposed to

their old insurance company so the next

question is do I need full coverage or

can I get by with liability only and

there is no one-size-fits-all when it

comes to this but the first thing I'll

say is if you are currently financing or

leasing your vehicle you know if you're

making monthly payments to your lender

then typically your lender is going to

require you as part of that contract

that you signed to have and maintain

full coverage they want to protect that

asset until you have fully paid them

back the money that you owe them but if

you own your car outright then I think

it comes down to do you have a safety

net do you have a nest egg you know in a

worst-case scenario if you wrecked your

car would you be able to replace that

car on your own or would you need an

insurance company to replace it for you

let's face it a car insurance company is

in the business to make money over the

long run they will collect much more

money from you than they will ever pay

you in claims therefore if you have a

big enough net worth if you have a nest

egg if you have a safety cushion and in

a worst case scenario you could you know

fix your car or repair it or whatever

the case may be if you got in an

accident then chances are you probably

want the bare minimum coverage because

over the long run like I said paying

this insurance company you're paying

them a lot and only gonna get back a

small amount when it comes time to

actually file a claim

so costs vary but liability coverage is

usually less than half the cost of full

insurance now obviously it's going to

depend on the value of your car and all

that but currently with my quotes I

would

have to total my car about every seven

years to justify paying full coverage as

opposed to the minimum coverage the

liability only so I'm a pretty good

driver and I know that there's no way

that every seven years I'm going to

total my car so for me it makes sense to

go with the liability only insurance

coverage next question is how long do

speeding tickets and accidents how long

do they stay on your driving record

because that can cause a significant

increase in your rates and unfortunately

there is no Universal answer for this

it's gonna vary from state to state in

my state that stuff stays on your record

for three years so if you've had a good

driving record for the last couple of

years and all of those tickets or

accidents are about to fall off

it might be worth calling up and doing a

price quote from a different insurance

agency the next question I get is you

know people say that I've heard that you

get a discount policy discount once you

turn age 25 and this is mostly true but

not necessarily generally speaking when

you are a newer driver statistically

you're at a much higher risk of getting

into an accident and then as you become

more experienced with driving you become

more mature just as a person your

insurance rates tend to go down a little

bit now 25 is a big number for a lot of

insurance companies but it's not a

universal answer and that's why I once

again highly recommend going with an

insurance broker because he might be

able to find you companies that give

their big break at age 22 or 24 or

whatever the case may be

the next question is should I go with a

six-month policy or a 12-month policy

and given the option that you should

always go with a 12-year policy you see

it's when your policy renews that the

insurance company has the ability to

raise your rates so by going with a

12-month period you're locked in for

that entire rate whereas if you went

with a six-month period

they were able to increase your rates

halfway through the year which means

months 7 through 12 you're paying a

slightly higher cost so you should

always try to lock in your race for as

long as you possibly can

also if you have a little bit of a

savings and if you're able to pay your

policy in full whether that's six months

or 12 months in advance you typically

get a discount for doing that and it's

usually right around a 10 percent

discount so if you can afford to pay for

12 months all in one big swoop then I

highly recommend doing that is that'll

save you a little bit of money in the

long run so car insurance is an area

where less driving equals more savings

so let's just say that you maybe you're

a stay-at-home mom or dad and so you

don't really drive to many places or you

work from home or your commute is very

very short let's just say you live just

a couple of miles away and so on a

yearly basis you don't put very many

miles on your car you want to make sure

that you let your insurance company know

this because a lot of times they have

pretty massive discounts especially if

you drive less than 10,000 miles per

year next up is bundling just like it's

always cheaper to get your cable your

cell phone and Internet all through the

same company same thing goes with

insurance so when you're shopping for

insurance for your car ask them if it

will save you money by bundling other

insurance policies maybe you own a home

so your homeowners insurance or your

renter's insurance maybe you have a boat

or a life insurance whatever kind of

insurance you have see if you can bundle

that together to get an extra savings

rate and finally look at the policy line

by line you see there's a lot of

different things that you're being

charged for with your insurance policy

do you need roadside assistance or what

about if your car breaks down and

they'll pay for a rental car while your

old car is getting fixed you know if

you're married and your spouse has a

vehicle that in a worst-case scenario

you

use or if you could get by with one

vehicle for a short period of time then

you don't need to be paying these extra

fees every month for items that you

probably won't need so at this point in

my life I shop around for car insurance

quotes about every two or three years

but for a long time I didn't switch car

insurance companies and when I finally

did I was able to save about thirty five

percent I mean that's a lot of money

every month I had the exact same

coverage the exact same everything but I

paid significantly less every month so

call an insurance broker and see what

they've got available for you so that's

gonna do it for us

today folks if you do switch car

insurance companies and you save some

money be sure to comment down below with

how much it is that you're saving and if

you like videos like these then be sure

to subscribe I have new videos every

week thanks and I'll see you all going

real soon