Each time the auto insurance renewal comes in the mail, it seems that the premiums go up. The insured car depreciated. No accidents occurred. So what can insured drivers do to keep insurance premiums from continuing their upward climb?
- Check policy details for accuracy. Does the insurance agency have the correct address? Look at the mileage driven. Drivers who drive more each day have higher premiums. Make sure the policy matches the mileage currently driven.
- Check for discounts. Most agencies offer discounts to policyholders who have more than one policy with the agency. The best deals are usually given to policy holders who have both auto insurance and homeowners insurance with the same agency. If you have multiple policies, be sure to ask if you qualify for a multi-line discount. Many newer cars come equipped with an anti-theft device pre-installed which may provide a discount. A few other discounts that drivers can possibly qualify for include anti-lock brakes, being a non-smoker, having good credit, and being over age fifty-five.
- Examine your coverages carefully. Don’t pay for coverages that aren’t truly needed. Many coverages are duplicated without the driver realizing. Drivers should be sure that their policy meets their needs without being excessive. Also consider the effect raising the collision and comprehensive deductibles will have on the premium. Raising it even slightly can reduce premiums by a good bit. Shop around for the policies that best meet your needs.
- Change your payment method. Many insurance companies offer a discount when the policy is paid in full for the entire term. If this is not financially feasible, try to set up the payments on a direct withdrawal method, as this may prevent monthly payment fees. Also, make sure to pay the payments on time to avoid late fees and risks of cancellation (which will in turn increase premium rates).
- Brush up on driving and safety skills. Consider taking a defensive driving or drivers safety course. Violations and accidents are one of the biggest variables in premium increases. Drive safely to minimize this increase.
- Keep your credit score high. Many insurance companies use credit as a rating factor. Drivers with poor credit have been shown to have a higher risk of accidents. Thus lower credit scores translate to higher premiums.
Auto insurance is a necessary expense for anyone who owns or drives a vehicle. Use these tips to keep it more budget friendly. For more information, visit Insure With U.S.