There are some things you cannot control about car insurance rates. However, by far the biggest factors impacting what you pay for auto insurance are under your control. That doesn’t mean it’s easy to see improvements. Yet, with a bit of help from your agent here at Skeele Insurance Agency, it may be possible to keep your rates as low as possible.
#1: Your Driving History
This is perhaps the most important component to keeping your rates low. A driver with numerous violations for reckless driving is likely to pay more for insurance. However, how each insurer views these rates is a bit different. Some look back over the last three years while others focus on the last five. In all cases, reducing any speeding violations or other moving violations can reduce your costs.
#2: How Often You File Claims
Those who have a significant claims history, which means you’ve filed a few insurance claims over the last few years, you will likely pay more for coverage. With fewer claims, such as claims for accidents you can reduce your car insurance rates. Keep in mind that good driving behavior is the best way to impact either of these areas.
#3: Your Credit Score
Insurance companies will use your credit score in many ways. This isn’t necessarily in the same way, though, as a lender. Rather, they know that those who have a better credit score may be less likely to file a claim. If you boost your score, you may see your insurance rates fall.
#4: Your Coverage and Deductible Needs
If you need more coverage, you’ll pay more for it. Keep in mind that you shouldn’t reduce your coverage just to get a better rate. Instead, pair it to your vehicle’s value and risks within the community. You also want to be sure your deductible is always in line with your ability to afford an accident. If, for example, you are in an accident, and your deductible is set at $1,000, will you have that cash on hand to pay for your costs? If not, keep the deductible lower.
#5: The Discounts You Qualify For
There may be some discounts you cannot qualify for, but if you haven’t done so, ask your insurance company for insight into those that may fit the bill. For example, is the main driver of the vehicle an A student at school? A good driver discount may apply here. Did you know you can get a lower insurance premium if you pay your premium in full instead of making monthly payments? If you’re a safe driver, you may qualify for a safe driver discount, a great way to see your insurance rates fall.
What Else Can Help You?
In some situations, vehicle owners may feel their rates are simply too high compared to others. Yet, there are plenty of ways you can reduce your costs.
- Purchase a vehicle with a higher safety rating. This can help to reduce how much insurance you need to carry.
- Buy a less expensive vehicle instead of the top-notch car out there. The lower its value, the less car insurance you need.
- Ask about discounts for added security to your vehicle or have a GPS system installed to make your vehicle safer.
Most importantly, work with your auto insurance company to learn more about the options available to you. Find out what steps are available to help you to improve your current insurance rates. Sometimes, just learning what is impacting those rates right now is the first step you need to take.