How to Lower your Auto Insurance Rates
Auto insurance rates have been on an upward trend for the last few years now. Unfortunately, this is a trend that is unlikely to change anytime soon. The increase in rates can be attributed to various factors. Some of them include high medical costs, exorbitant repair costs, increase in the number of accidents etc. All of these are passed down to consumers in form of high auto insurance rates.
How to reduce auto insurance
The good news is that it is possible to lower your auto insurance rates in the following ways:
Insure many drivers/cars - Usually, it is much more expensive to insure a single vehicle with an insurance company than it is to insure several vehicles. This is because these companies tend to offer bulk rates in a bid to attract more business. The same applies to insuring many drivers.
Clean driving record - The more moving violations or accidents that one has, the more money they will pay in their annual premiums. Therefore, try to keep a clean driving record so that you pay much less for your auto insurance.
Defensive driving course - There are instances when insurance companies provide discounts to consumers who have successfully completed approved defensive driving courses. Even taking a course in accident prevention can really help in reducing your auto insurance. However, it is best to always consult your insurance company before you sign up for these courses.
Look around incase premium is hiked - If your annual premium has significantly gone up and you are yet to renew your policy, it is advisable to shop around for better quotes. In addition, make it a habit to look around every 2 years for competitive rates.
Use mass transit - Insurance companies are known to issue questionnaires during the signing up stage. One of the most obvious questions that you will be asked is the number of miles that the automobile is driven each year. This means that the higher the mileage, the higher the rate. Using mass transit occasionally can help in greatly reducing the mileage and this is positively transferred to your premium.
Carefully select vehicle - The type of vehicle that you purchase has a large bearing on your premium rate. Vehicles that are large and top of the range attract higher premiums compared to smaller vehicles. Hybrid vehicles attract discounts from insurance firms. The best way to go about this is to do your homework before buying a vehicle.
Raise your deductibles - Generally, the lower a deductible is, the more one has to pay in auto insurance. This means that if your raise your deductibles then your premium will be positively affected.
Improve credit rating - The record of a driver is one of the top items that influence the cost of auto insurance. What most people fail to realize is that there are insurance companies that also look at the credit rating of the driver. This is because people who are responsible in their private lives are less likely to file claims.
The tips above are not exhaustive as there are many more.
The above insightful information clearly shows some of the things that can help you to lower your auto insurance rates. Try to follow most if not all of the tips and see the results for yourself.