Tips For Lowering Your Auto Insurance Rate

Do you want to learn how to lower your auto insurance rate? It's not as difficult as you might think. Auto insurance companies want your business, and most will work with you in order to work for you. Being an educated consumer is the first step to finding a lower auto insurance rate. Here are a few more.

Don't Wreck or Break the Law

Your driving history plays the largest role in determining your auto insurance rate. Multiple tickets or wrecks throw up red flags to insurers and mark you as a "high risk" client. Your premium will automatically be higher, and the more tickets and/or accidents you're involved in, the higher your rate will climb.

The easiest way to lower your auto insurance rate (or maintain a low rate) is to be a smart, responsible driver. You can also take a driver training class to receive a lower rate for up to three years.

Ask for a Higher Deductible

If your wallet allows, you can easily and substantially lower your auto insurance rate by requesting a higher deductible. A deductible is what the driver is asked to pay for a claim before his or her insurance pays anything.

For example, if someone with a lower deductible gets into a wreck, they may only have to pay $300 out of their own pocket before insurance covers the rest. If you have a higher deductible, you may pay $1,000 up front. It sounds silly to ask for a higher deductible, but choosing this route can save more than 40% on your premium each year. So if you're a good driver who feels confident behind the wheel, increase your deductible and see immediate rate savings.

Maintain Good Credit

What does your credit score have to do with your auto insurance rate? To insurers, everything. Proving that you're a responsible citizen, by either maintaining a good driving record or maintaining a good credit score, shows auto insurers that you are a "good risk" for them.

You can maintain a good credit score by paying your bills on time and keeping track of your credit balance(s). Most people check their credit score every year. Why? To make sure they are still in good standing and to correct any false charges or errors.

Ask About Group Plans

Have you ever gotten a letter in the mail from a business organization, or the college you attended, telling you to purchase auto insurance through them? Believe it or not, sometimes those letters are actually worth opening.

Many companies offer auto insurance rate reductions for drivers belonging to professional, business, or alumni organizations. It wouldn't hurt to ask your employer or any clubs you belong to if they know about group auto plans.

Determine Your Car's Value

If you drive an older car, it may not make sense to buy the best possible insurance coverage for it. Let's suppose your car is worth significantly less than the premium. In this case, it might be wise to drop costly collision coverage. Finding out the value of your car is easy. Simply check out Kelley's Blue Book website to learn more.

blog comments powered by Disqus