After making a serious mistake or a series of mistakes, you might have your driver’s license revoked. As a result, you’ll also be saddled with a much higher insurance rate. A revoked license is a definite sign to the car insurance company that you are a dangerous driver carrying lots of risk. Now is the time to begin comparison shopping for better rates, which may end up saving your budget over the long term. Here’s how to assess what changes will occur to your insurance and how to find a better insurance rate.
How to consider the effects on your insurance
Step 1: Begin with a calm mindset. There is nothing worse than dealing with car insurance when you are stressed, so take a deep breath and stay calm as you begin the process.
This will go a long way to making your comparison shopping more pleasant, and you will be able to think clearly if you are not wound up the whole time.
Step 2: Determine your new rate. Figure out what your new rate is going to be on your present insurance as a result of the revoked license.
You should do this as soon as possible after the revocation occurs. Partially, this is because you will still be forced to keep insurance so long as your car remains registered in your state.
You don’t get a break just because you don’t have your license, so you will want get all the facts right away and know what you’re paying.
Step 3: Check the details of your policy. Immediately find out when your plan expires and is set to renew.
You will want to stay aware of your policy’s expiration because, in the first place, if you are going to switch companies, you will want to make sure you are making the best decision in terms of getting the maximum refund and avoiding cancellation fees.
Secondly, if you might not be able to get your license back for a long time, then un-registering your car will be an option for you, in which case you won’t want to renew your policy.
How to search for better insurance rates
Step 1: Get quotes from other companies. The first step in comparison shopping is seeing what competitors are offering.
You might be able to find a much better policy suited to you if you do a little research on prices. You may need to look at less common companies who insure higher risk drivers in addition to the usual insurers.
Step 2: Compare quotes. Look at all the quotes you received and match up their prices to services.
Narrow down the selection based on which quotes are too exorbitant and which don’t offer sufficient services.
Step 3: Negotiate with a representative. Reach out to reps from your best options to negotiate a lower rate.
This may not be natural for you, but doing so could earn you big savings. You can mention lower rates that a competitor has offered you, or you could indicate that you aren’t willing to sign up unless the price point drops.
You probably won’t have as much leverage as someone with a flawless driving record, but it is still worth trying to save as much as possible.
Step 4: Dig deep for discounts. After the revoked license, your base rate is going to skyrocket (and may even be cancelled), but you can bring it back down somewhat by getting serious about discounts.
If you won’t be driving much or can avoid driving, you may be eligible for a low-mileage discount. Consider bundling your different policies for added savings.
Take a driver’s education course to prove that you are responsible, or at least that you are serious about improving your track record. You could also look for savings in how you pay for your insurance and in renewal discounts as well.
The options will vary depending on your situation, but taking advantage of everything available to you will pad your budget and may make a major difference.