If you are paying too much for you car insurance, the easiest way to obtain lower rates is by switching to a new insurer. Yet, the hassles of switching to a new plan mean that consumers may look at ways to save money with their current insurer instead of switching. Read on and we will look at ways you can reduce your car insurance premiums, by offering you money-saving tips that you are certain to welcome.
Your Credit Score
That three-digit number known as your credit score can have a big impact on your insurance rates. In some states, insurers are allowed to determine rates based on your credit history and will write a policy accordingly. If your score is in the tank, consider working toward raising it first before making a switch. Clean up your credit and pay down your outstanding balances. You will be rewarded with a higher credit score and a lower auto insurance premium.
As your car ages, your insurance cover should change as well. New cars should be fully covered and you deductibles low. You may even opt for gap coverage if you are leasing your car. For older vehicles, raising the deductible and even eliminating some coverage can save you a bundle. Your 10-year-old sedan with more than 150,000 miles on the odometer may no longer require costly collision coverage.
For drivers with a spotty driving record, points can result in higher premiums and take at least three years to disappear. You can help move the process along by taking a defensive driving course if offered in your state. Such courses routinely wipe out three points from your driving record, an effort that is rewarded by insurers with lower premiums. Contact your state’s Department of Motor Vehicles for authorized driving schools.
You have tried and tried, but your insurance premiums are still too high. Or at least that you think they are. At this point, you need to contact other insurers and give them information about your car including your current insurance coverage. Obtain quotes and then compare prices. If prices are 10 percent or more lower, than consider making a switch. You can also work with an insurance broker to help you find a better deal. Instead of dealing with one insurance company, this broker will pull up quotes from several companies. Brokers represent you, not insurers — hire a broker if you need help finding a better insurance plan.
Insurers may offer additional savings based on other factors including multi-policy insurance, customer loyalty, college grades and your employer. If you are not certain about what discounts are available, simply ask. You may be able to shave off more money by qualifying for such discounts.