Many people pay far more than they need on their auto-insurance insurance premiums. By simply renewing the same old policy drivers can miss out on much better deals, thus it pays to not become complacent but to comparison shop for the best auto insurance rates. It is worth remembering that the cheapest deal does not necessarily provide the best cover for your needs, so establish what your actual needs are in terms of deductibles and coverage before beginning your search.
The best way to ensure you are eligible for the best rates has nothing to do with your driving ability as this is secondary to your credit score. 90% of auto insurers factor your credit score into the premium rate. Those with excellent credit are perceived to be more reliable and responsible, more likely to maintain their vehicle in good condition, and most importantly in the eyes of the insurer, make less claims.
Actuarial analysis favors this conclusion though there is no direct evidence. Having a perfect driving record combined with a low credit score will result in higher premiums. One way to avoid this is to seek out one of the 10% of insurers that don’t factor in credit scores, if your credit is less than exemplary.
Ensuring your car is equipped with safety and anti-theft devices will result in a lower insurance rate. Individual insurers will be able to tell you which devices garner a discount on their rates. Your zip code is fundamental too, but it may well not be worth moving to a better neighborhood, just to reduce your auto insurance.
Using the same insurance company for all your insurance needs will result in a discount. It is worth taking property insurance and auto insurance from the same company, and if there is more than one vehicle use the same company to insure them.
Your ability as a driver will influence your premiums, but a bad driving record will be weighed more than a good one. The number of claims made will have more bearing, and you should be able to get a no claims discount if you haven’t made a claim. A number of insurers will offer a discount if an advanced driving course has been taken. This is an excellent way to feel more secure about any teens you are insuring, as well as lowering the premium.
Of course the best way to get the greatest auto insurance rates is to consider the auto you drive. The flashier the model the more you pay, so if the budget is tight it is worth trading down to a vehicle that costs less to insure in the first place.
Don’t become complacent and just accept your current deal but comparison shop for a better one to make savings. If you apply when your credit score is shining, armed with documentation of your cars security devices and waving your certification from an advanced driving course, you really should expect to see a good reduction in your auto insurance rate.