Many people’s auto insurance rates went up, with the exception of those who gained just enough experience to lower their new-driver rates, which are always the highest. While many people gripe about greed on the part of insurance companies, the truth is that most insurance companies are making less money, which is why they are all raising rates. They need to have a large enough pool of resources to pay for clients’ losses in the event of theft, vandalism and accidents. If you’re interested to know exactly why rates have gone up, read this article. Or, read on if you’re more interested in finding ways to lower the rate you’ve been given. It’s very possible to change some factors auto insurance companies use to determine your rate. Below are the top 10 ways.
1. Drive very cautiously
We know it sounds obvious, but don’t most of us get a little lazy behind the wheel? The truth is that most accidents happen near one’s home or on the usual route the driver takes regularly. It’s during these drives that we are far less alert, believing that we’ve driven the route a million times and can relax. While it’s not a good idea to clutch the wheel and get anxious while driving, you’ll want to avoid an accident at all costs by staying mindful. Nothing adds points to your license — and dollars to your car insurance — like a collision. Also, if you have a good driver discount, you may lose it if the collision is your fault. Yes, one small fender bender can make a big impact on how much you pay for auto insurance every month.
2. Pay your auto insurance in full
There are always charges tacked on when you pay in installments. If you can’t pay it all upfront, compare the cost of paying in installments versus putting a chunk of it on a zero or low-interest rate credit card. Also, some carriers will offer a lower fee if you use EFT automatic withdrawal of your remaining payments.
3. Bundle, bundle, bundle
Just as you save by bundling your cable, Internet and phone, the more insurance products you buy from a company, the more they are willing to lower your rate. If you pay Homeowners Insurance, pay attention. You can bundle everything from Auto and Home Insurance to Life and Business Insurance. Or, you can bundle both your cars for a multi-car discount. Just speak with an Insurance Specialist (888) 772-4247 about all that you insure and they will be able to guide you in the right direction towards savings.
4. Buy a less luxurious car
Think about it: the more expensive the car you buy, the more expensive your auto insurance will be. You probably be making huge car payments. And your car insurance will be far more expensive than if you bought a less flashy or used car. If your rates are becoming unaffordable, it may be time to sell your car and buy something more low-key.
5. Safety features will save you cash
Yes, there is a discount for safety features. Because your vehicle is less prone to accidents due to new technology, your auto insurance will be less expensive. However, if you end up having a car accident, repairing or replacing these high-tech gadgets will be pricey. Just make sure to understand the big picture before buying a car that is fully loaded with safety features.
6. Can your career lower your rate?
Before you laugh, it’s best to check with an Insurance Specialist (888-772-4247). Certain professions, like teaching and engineering, receive substantial discounts. Professional groups and alumni associations, bar associations and the like are often qualifications for a group discount from your insurance company too. Having a trustworthy agent who scours your profile for discounts really does help!
7. Put fewer miles on your car
In California, the number of miles you drive can dramatically change your car insurance rate. If you live far from work and plan to stay at that job for years to come, move closer. Not only will your auto insurance rates drop, so will your gas bills. You will also have less wear-and-tear on your car, which will save you a bundle in the long-run. If moving is just not an option, see if you know people nearby with whom you can carpool. Or, use public transportation. Basically, the less you drive, the less you pay in car insurance.
8. Good grades mean savings
If you’re a student, your good grades make you eligible for a discount. This is usually a nice break for newer drivers who have the highest auto insurance rates out of anyone on the road. Extra good news: both high school and college students are eligible for Good Student Discounts. With Mercury Insurance, for instance, a 3.0 GPA or higher earns you pretty nice savings!
9. Adjust your deductible
The easiest way to lower your monthly payments is to increase your deductible. The deductible is what you’re required to pay before your car insurance covers losses. So, if you elect a $1,000 deductible, you have to pay $1,000 towards damages before coverage kicks in. Some people elect an even higher deductible than $1,000, not a wise move to make if there’s a chance that you won’t have that money if you get into an accident.
10. Keep your car safe
If the area in which you live is rated as a high-crime area, the chances of your car being stolen/vandalized rises right along with your Comprehensive Insurance rate. But, without Comprehensive Insurance, your Liability Insurance alone won’t cover theft and vandalism. If you choose not to buy Comprehensive Insurance, the only other way to get compensation for a stolen car is to find the thief and recoup the cost/the car. The wisest option: Investigate theft deterrent systems. Some of them qualify you for discounts on your rate.
Shop Your Insurance Rates With AIS
Whatever you end up doing to cut costs, make sure it’s not by going without auto insurance. Otherwise you risk suspensions and fines, and huge exposure if you’re at fault in an uninsured accident. Be wise and always carry at least the minimum auto insurance required by your state. Also, make sure that you have the proper coverage in case you do lose your car to an accident or theft. Call a trustworthy AIS agent at (855) 919-4247 to discuss coverage options and how to save.
The information in this article was obtained from various sources. This content is offered for educational purposes only and does not represent contractual agreements, nor is it intended to replace manuals or instructions provided by the manufacturer or the advice of a qualified professional. The definitions, terms, and coverage in a given policy may be different than those suggested here. Such policy will be governed by the language contained therein. No warranty or appropriateness for a specific purpose is expressed or implied.