Car insurance is so expensive that for many people it is their largest expense after food, housing, and their car itself. If you fall into that category, there are some things you can do to get cheaper insurance. In most cases you will get the same coverage as you had before, you’ll just pay less money for the privilege. In some cases you may even see your coverage improve, even as your rate goes down. That’s a pretty nice deal if you can get it.
How to Get Cheaper Insurance Tip 1
Clean up your driving record. That’s kind of a no brainer, and it’s the first thing that pops into most people’s head when they think about ways to lower their insurance premium. But the fact is that it is the one thing that is within your control that has the greatest effect on your insurance rates. Not only does it affect the rates you pay with your existing insurer, in many cases you’ll be able to go with a company that told you to take a hike when your record was bad.
How to Get Cheaper Insurance Tip 2
Improve your credit score. That was big news to most people 2 or 3 years ago. Few people knew that your credit score has a large impact not only on the price you pay for credit, but your car insurance rates as well. The reason is simple. There is a statistical correlation between an individual’s driving ability and their credit score. In most cases a poor credit score also means they are more likely to exhibit behavior that isn’t conducive to staying out of trouble on the road.
More importantly for the insurance company, it means those with bad credit are more likely to submit claims that the company will have to pay. It comes down to responsibility and insurance companies feel that your responsibility affects their bottom line. One thing that fewer people know is that insurance companies don’t use your straight FICO score, as lenders do.
Lenders are concerned with the risk you present to them when they’re loaning you their money. If you’re paying their bills on time, an insurance company doesn’t really care about that. They want to know your likelihood of costing them money. They massage the credit score numbers a bit to more accurately reflect your insurance risk. The main thing insurance companies do is put a higher emphasis on your late payments and how late they are. They have noticed a parallel between an individual’s late payments and their claim activity. So, improve your credit score and you can usually get cheaper insurance, weather at your existing company or by switching to another carrier.
How to Get Cheaper Insurance Tip 3
Max out your deductible. The higher your deductible, the lower your premium, so raise that deductible. You’re not going to want to make any claims for anything near the amount of your deductible anyway, so there’s no sense in keeping it under $1,000 or so, you’re just costing yourself money every year. You’ll get cheaper insurance by keeping your deductible as high as you can stomach. If your vehicle is financed, check with your lender to see the maximum deductible they allow.
How to Get Cheaper Insurance Tip 4
Compare rates from different insurance companies. Car insurance companies evaluate risks differently and also specialize in different types of customers. For example, some insurance companies will not high risk customers, and others will charge higher rates than others for the same high risk driver. Comparing rates between the hundreds of auto insurance companies out there can be a real pain.
Thankfully, the Internet provides a much easier solution. It is similar to the way many businesses go through insurance brokers to get the lowest rate for their business insurance. You can take advantage of the same scenario for your car insurance. You can have the different insurance companies actually bid for your business. The competition gets you a lower insurance rate, and you are able to find an insurance company that specializes in your specific situation. Click here to compare rates from different companies and see how much you can save. Think about it. In just a few minutes, you could be paying as little as half of what you are paying for insurance now. Wouldn’t it be nice to have that extra money in your pocket, instead of theirs?
How to Get Cheaper Insurance Tip 5
Look at how many miles you really drive to and from work or school every day. The fewer miles you drive, the lower your rates, so if you’re close to the mark where you’d get a lower rate, you may want to check that mileage figure again. Make the drive so you go the shortest route possible, and take a look at the number on more time. You’d be surprised how much cheaper your insurance can get by dropping down one mileage increment.
How to Get Cheaper Insurance Tip 6
Look at every association you’re affiliated with to see if you’re eligible to get cheaper insurance by being a member. Many groups and associations have affiliate agreements with insurance companies so that their members get cheaper car insurance. Sometimes associations have preferred insurance providers. In this case, switching insurance companies to the one your group or association has an agreement can get you cheaper rates. Check with your associations and also your insurance agent.
How to Get Cheaper Insurance Tip 7
Speaking of discounts, make sure you’re getting all the discount from your insurance company that you are eligible for. Many people spend too much simply because they don’t thoroughly check all the discounts their insurance provider offers. Check out this post on getting discounts on your car insurance to see if you could be missing some too.
There a many ways to get cheaper car insurance. Spend a few minutes and you could save a nice chunk of change.
