There are a variety of factors that ultimately influence one’s auto insurance rates. Some of the most influential factors include one’s place of residence, the safety of one’s car, and even one’s credit history! To lower your auto insurance rates, follow these basic tips!
· Show Loyalty – One of the easiest ways to lower your auto rates involves showing loyalty to one specific insurance company. Essentially, if you can consolidate your auto, home, and other categories of insurance through one provider, the provider may offer you additional discounts and bonuses
· Establish Trust – After choosing your provider, show your insurance provider that they can trust your driving! Keep track of your mileage, and make sure that you’re not overpaying for miles that you don’t actually drive (insurance rates are higher for vehicles that are used the most frequently). Additionally, avoid speeding tickets, accidents, and other driver-based errors. Many insurance companies reward drivers for their safe records and habits.
· Be Careful of Your Credit – Although it’s a surprise to many drivers, your credit history actually influences your auto insurance rates! If you have a poor record of paying bills on time, you can expect a higher auto rate. Also, just as you should closely watch your credit, you should also closely evaluate your auto insurance policy—be sure there are no added and unnecessary coverage fees, such as car rental coverage, etcetera. By deleting un-needed services, you can save a small bundle of cash.
· Raise Your Deductible – In the unfortunate case of an accident, you are required to pay some denomination for a deductible. Essentially, before your insurance company pays for your damages, you must first pay cash or credit for the upfront (pre-agreed) costs. The higher your deductible, the lower your overall insurance payment will be. Choose this carefully though, as you do not want to choose a deductible amount that could later be impossible to pay! Make sure you’re being financially savvy while also being realistic.
· Be Selective for Safety – As you pick out your car of choice, don’t just go for the cheapest model without considering its safety standards! Driving an unsafe car will raise your insurance rates! Be sure that your car has basic safety features such as:
o Security system
o Manual wheel locks
o Airbags
o Anti-lock break systems
o Additional safety features (check with your provider to see which features provide added discounts)
