If you’re looking for auto insurance, you’ve probably noticed that rates can vary widely, even among companies that offer the same type of coverage. This is because each company has factors in setting your premium, such as how likely they think you are to file a claim or how much coverage you need.
Even if you have an excellent driving record, you can do more than someone with a defective one. However, there are several things you can do to help lower your premiums. Here are tips for getting better auto insurance rates:
If you already have a home or life insurance with the same company as your auto policy, it may be worth bundling them together into one policy to save money. Bundling means that one company handles all your insurance needs, so if you have an accident in one vehicle and need to file a claim for both cars at once, it’s easier for everyone involved.
You can usually save money by switching auto insurers every year or two. It’s not uncommon for people to pay less than half as much when switching from one provider to another, even if they have a perfect driving record. If you’re satisfied with your current insurer but want to see if there are better options, call up several companies and ask for quotes.
One of the best ways to save money on auto insurance is to find a company that offers competitive rates. The easiest way to do this is by getting quotes from multiple providers. With tools like the Insurance Shopping Assistant, it’s easier to compare policies and prices from dozens of insurers.
Consider Dropping Collision And Comprehensive Coverage
Consider dropping collision and comprehensive coverage. Collision pays for damages if you hit someone or something else, while comprehensive pays for damages from floods or earthquakes. If you have a loan on your car or don’t want the hassle of dealing with an accident, it might be worth dropping these coverages significantly if they raise your monthly payment by more than $30 or $40 per month.
Check Your Credit Report Annually
If you want to make sure you’re getting the best deal on car insurance, check your credit report annually. Your credit score plays a role in determining how much you pay for car insurance, so if something on your account could be improved, take action before applying for coverage.
Ask about discounts that may not be advertised, such as bundling home and auto insurance policies with one carrier or having multiple cars insured under one policy. You can also ask about discounts for good drivers and bundling policies with other financial products offered by the same company.
The more you know about how car insurance companies make their decisions, the better off you’ll be. Make sure to look into each company’s financials before applying for coverage and ask questions if something doesn’t seem right. If there is a problem with your application, don’t assume that it’s because of something illegal or unethical on your part; instead, reach out to an independent insurance agent who can help you understand why this happened and whether there are any options available to fix it.