Many factors influence the cost of auto insurance. But there are several steps you can take to be sure you are enjoying maximum savings on your insurance. Following are the top six tips from industry experts.
TIP #1: MAINTAIN CLEAN DRIVING RECORD
Your driving record is perhaps the most important factor insurers use to calculate rates. The safer you are as a driver, the lower your premiums. The longer you go without getting tickets or being involved in accidents, the better your rates. You can enhance this even more by taking a refresher driving course. Driving laws change all the time and you can get a discount simply by taking this type of instruction.
TIP #2: CHECK CREDIT HISTORY
Many drivers are still unaware their credit scores are used to calculate insurance premiums. Before selecting a new policy or insurer, check to see what your credit score is so you are prepared. If you do not agree with your credit score, get it fixed before purchasing new insurance. Notify your current insurer when your credit has been repaired. They may not check this each year, and you could be penalized with higher rates even though you now have good credit.
TIP #3: LOOK FOR NEW DISCOUNTS
Even if you stay with the same insurance provider each year, take a look at their new discount offers. Do not assume your insurance agent will contact you and offer discounts. You need to do the leg work here. If there is a new discount you feel you are eligible to receive, contact your agent and ask to have it applied to your policy.
TIP #4: BUY WITH INSURANCE IN MIND
This goes for your car and home. Certain cars have higher insurance rates because they are less safe, have high theft rates, and cost more to repair. Rather than buy a car because you like it, check to see which vehicles have the lowest insurance rates and consider those ones first. Where you buy a home can also affect your car insurance rates. If you buy in a safe neighborhood, you will have lower rates. Living in urban areas will increase premiums.
TIP #5: MINIMIZE CLAIMS
Consider the value of your vehicle compared to the impact a claim will have on your insurance rates. The more claims you have, the more risk you pose to your insurer which results in higher premiums. Only submit claims when the financial benefit is obvious.
TIP #6: REVIEW QUOTES ANNUALLY
Even if you are not actively looking for new auto insurance, get insurance quotes each year to make sure you are still paying the lowest rates possible. If you are not, consider switching auto insurance or ask your current provider to adjust your premiums.