Car insurance is a fact of life, but do you often feel like you’re paying too much? You might be. Here are some possible reasons for those high bills, followed by some strategies for reducing them.
Why Your Premium May Be High
Accidents and Tickets
Generally, if you are the cause of a car accident you’re going to pay more. The added cost can run anywhere from $80 to $1000 per year, depending on where you live. A speeding ticket or other moving violation on your record might make you considered a risky driver. Then, up go your rates.
Buying a New Car
New cars usually have higher auto insurance costs because their value is higher, and they can be more expensive to repair. And, if your new car is under lease or you have a loan on it, you’re going to have to carry the pricy comprehensive and collision coverage options.
Low Deductible
You may be seeing higher premiums because you have your deductible set too low. Only you know the risk you’re willing to take when it comes to the amount of money you have to spend should something happen. But, to save money on monthly premiums, you can set your deductible higher.
Not Using Discounts and Bundling Policies
There are so many options for discounts these days. Safe driving, good student, and membership-based discounts are common. Many people don’t take advantage of these because they don’t know about them. A little research will likely reveal some discounts you’re missing out on. And, if you have more than one insurance policy, but with different carriers, you may be missing out on bundle savings.
Strategies to Reduce Your Car Insurance Costs
Drive Safely
The best way to keep your auto insurance costs low is to avoid tickets and accidents. If you are a safe driver, your insurance company will be happy to have you and give you a good rate. And, fewer (or better yet, no) accidents or tickets means your rates won’t rise.
Join a Club, Bundle
Employers and membership groups are a great source for car insurance discounts. Check with your employer to see if one of your benefits is reduced car insurance rates. AAA, Costco and other organizations and clubs offer discounts too. Also, don’t miss out on bundle savings. If you have a home insurance or life insurance policy, bundle them together with one company for savings.
Research New Car Insurance Costs Before You Buy
Rather than being hit with a big surprise when you buy a new car, do a little research before you buy. Some safety options on new cars may even help you save some money.
Maintain Your Credit Rating
Your credit information is usually used to determine your price for auto insurance. So, keep your credit clean by paying on time, keep low balances and be sure to check your credit record regularly to fix any problems that might affect your insurance rates.
If you still feel you’re paying too much for your auto insurance, you probably are. It might be time shop around and compare quotes. InsuranceWins makes it easy. Fill out the form and in under two minutes you’ll see just how much you can save.
