Some expenses are simply a necessity of living, no matter how unpleasant they may be. Car insurance is one such expense. It is hard to pay and you might be wondering why you are spending so much money every month on it. If you are involved in an accident or have a claim, you will quickly see why you need car insurance.
Don’t let your security fool you and continue to pay your car insurance premiums every month. Your car insurance company will not advise you to look into ways to save money. It is possible that they won’t. You can have a dramatic impact on the cost of your car insurance by changing your life circumstances.
What is your driving record? You may be eligible for the safe driving discount offered by many car insurance companies if you have a clean driving record and have not had any accidents or tickets in the last five years.
What should your deductibles be? If your collision insurance deductible is $100, then you will pay a lot more for collision coverage than if it was $500 or $1000. It does mean that you will have to pay more if you have to file a claim. But, is this worth the higher premiums? This is one of the many questions you should ask your car insurance company periodically.
Are you able to pay off your car? If you are, you may be able to drop collision coverage. You can also reduce or eliminate many other coverages which will dramatically lower your rate.
What is your credit score? Car insurance companies are increasingly using consumers’ credit scores to determine the rates they will charge them. You should work to improve your credit score. For more information about raising your credit score, please visit our web site at http://www.credit-help-center.com
Are there teens or young adults living in your home? If you answered yes, your car insurance rates increased when your teenagers or younger children were listed as drivers on your cars. Many companies offer discounts to teen drivers who maintain a certain grade-point average (usually around 3.0 GPA). Your car insurance company should be notified if you have had a teen driver, but they have since moved on.
Are you a homeowner or renter who has multiple insurance policies? If you have multiple insurance policies, many insurance companies will offer a multi-product discount.
Finally, shop around. It doesn’t matter if you have been with one car insurance company for many years. This does not guarantee that they will still be the most affordable option. Online car insurance companies can be very competitive with rates so don’t ignore them. Get a quote to get an idea of what the rates will be. You will be able to put the money you save in your pocket rather than in the bank account of an insurance company.
