Nine Ways to Keep Your Auto Insurance Rates Low
On average, auto insurance rates vary from state to state. But the reasons for that are more complicated than you might think. In fact, rates fluctuate based on an entire host of factors. To keep your auto insurance rates low, you need to know about all the things that can affect your premium. Even if you have a reliable car and a solid driving history, factors like where you live, what kind of vehicle you drive, and even your credit score can play a role in how much you pay each month for car insurance coverage. Here are nine ways to keep your auto insurance rates low so that they don’t creep up on you and become an unexpected cost burden every year:
Know the important factors that affect your auto insurance rate
There are plenty of factors that determine your car insurance rate. Some of the most important factors that impact your rate include where you live, what kind of car you drive, and even your credit score. If you live in a high-risk area or drive a high-ticket car, your rates will probably be higher than if you drive a low-ticket car and live in a less risky area.
Many states have laws limiting how much insurance companies can charge you if you are caught speeding. If you get in a wreck while driving 10 miles over the speed limit, you could end up paying a lot more in car insurance after you file a claim with your insurance company. If you need to drive a little over the speed limit to get to work on time or to get somewhere in a pinch, use caution and drive the speed limit. But if you are looking to drive a little fast, there are other options. You can still get from point A to point B just a little bit faster. Plus, you can be safer and still get there on time. There are also a variety of apps that you can use to manage your speed while driving.
Drive defensively and stay aware of your surroundings
One of the best ways to keep your auto insurance rates low is to drive defensively. That means keeping an eye out for other drivers, pedestrians, cyclists, and other obstacles in your path. Driving defensively can help you avoid an accident or reduce the severity of an accident if one should occur. It can also help you avoid receiving a traffic citation and incurring additional insurance costs.
Keep up with maintenance
Taking good care of your car can help you keep your insurance rates low. For example, make sure to bring your car in for regular oil changes and tire rotations. That way, you keep your car in good condition and don’t end up causing unnecessary wear and tear that will end up costing you more money in the long run.
Know what to ask your insurance agent
A lot of people don’t know what to ask their insurance agent. And that’s why you’re probably paying a pretty high rate. One question that can help you save a few bucks on your auto insurance is what’s a reasonable amount that you should be paying?
Don’t drop coverage or cancel an existing policy until you’re ready
If you’re currently underinsured or have a low coverage limit, you may want to wait before dropping coverage or canceling your existing policy. Dropping coverage before you’re ready could result in significantly higher rates. And canceling your policy before you’re ready could result in the cancellation of any discounts you currently receive.
Stay away from high-risk drivers and cars
If you’re shopping for car insurance, you may want to consider dropping your high-risk driver or high-risk car listed on your policy. Dropping a high-risk driver or car could result in significantly lower rates. Depending on your state and the company you’re shopping with, dropping one of these factors could also result in the immediate cancellation of your policy.
Consider raising your deductible
When it comes to auto insurance, one of the most effective ways to get a lower premium is to raise your deductible. A deductible is the amount of money that you pay out of pocket when you file a claim with your insurance provider. If you're willing to accept a higher deductible, then you may be able to significantly reduce your premiums.
When deciding how much to raise your deductible, it's important to balance the potential savings with the risk that you'll be on the hook for a large expense if you have an accident or other issue. The best way to determine the right deductible for you is to review your driving history, consider how much you can realistically afford to pay if you need to file a claim, and compare prices for different deductibles at multiple insurers.
If you decide to raise your deductible, make sure that you're saving enough on premiums to offset the extra cost. It's also wise to set aside some money in case you do need to pay for a claim out-of-pocket. That way, you'll be prepared and can avoid having to come up with the money on short notice.
By taking the time to assess your needs and shop around for different deductibles, you can get the most affordable auto insurance possible without sacrificing important coverage.
By keeping tabs on the factors that affect your auto insurance rates, you can get the most out of your rate comparison and save money on your premium each year. Don’t speed. Drive defensively and stay aware of your surroundings. Keep up with maintenance. Know what to ask your insurance agent. Don’t drop coverage or cancel an existing policy until you’ re ready. Stay away from high-risk drivers and high-risk cars. And in short, be safe. With these tips, you can keep your auto insurance rates low and be confident that you’ve done everything you can to protect yourself and your family.